Major mkts gain slightly, Saudi banks rebound

Dubai / Reuters

A rebound in the banking sector buoyed Saudi Arabia’s bourse on Wednesday and other Gulf bourses also rose, with Dubai’s Shuaa Capital surging on hopes that potential buyers of a stake in it had placed high bids.
Saudi banking shares, which were among the market’s worst performers in May, attracted buying on dips as Saudi British Bank (SABB) jumped 3.2 percent. Riyadh’s main stock index edged up 0.2 percent.
Healthcare and education shares were also strong with Al Hammadi Co, the medical equipment supplier, adding 2.2 percent. The only listed education stock, Al Khaleej Training and Education, rose 3.1 percent.
Yanbu National Petrochemicals (Yansab) erased some of its 6.5 percent gain in the previous session and dropped 1.7 percent. On Tuesday the company said its board recommended the distribution of a higher dividend for the first half of this year.
Other petrochemical shares were also laggards with the largest producer, Saudi Basic Industries, falling 0.6 percent.
Cairo’s main index gained 1.2 percent. Sixth of October Development and Investment rose 3.3 percent; on Tuesday the company reported a 31 percent drop in first quarter net income to 54.7 million Egyptian pounds ($6.2 million).
A note by Cairo firm Naeem Brokerage said that although both top line and bottom line results came in below its expectations, it was maintaining a “buy” rating on Sixth of October because of its strong balance sheet and healthy net cash position.
Investment bank EFG Hermes climbed 3.7 percent to 11.65 pounds, its highest finish since last July. It has been in an uptrend since mid-May; Dubai Group has said it will divest its 11.8 percent stake in EFG by the end of this year, and investors are hoping that a strategic shareholder could benefit the company. A week ago, HSBC raised its target for the stock to 13.2 pounds from 11.5 pounds.

DUBAI
In Dubai, Shuaa Capital surged 6.3 percent after Reuters reported on Tuesday that Abu Dhabi Financial Group, Al Mal Capital and Arqaam Capital were among the bidders for Dubai Group’s 48.4 percent stake in the Islamic financial firm.
The Dubai index recovered early losses and edged up 0.1 percent to 3,315 points; it faces technical resistance at the mid-May high of 3,373 points, from which it retreated earlier this week.
Abu Dhabi’s index gained 0.8 percent, supported by rises in Dana Gas and telecommunications firm Etisalat , which climbed 3.8 and 2.3 percent respectively. Etisalat, a constituent of the MSCI emerging market index, is up 5.5 percent since hitting a 12-week closing low on May 22.
In Qatar, the index climbed 0.4 percent, buoyed by a 0.5 percent bounce in Qatar National Bank, the largest listed lender.

WEDNESDAY’S HIGHLIGHTS
SAUDI ARABIA
* The index rose 0.2 percent to 6,458 points.
DUBAI
* The index edged up 0.1 percent to 3,315 points.
ABU DHABI
* The index gained 0.8 percent to 4,285 points.
QATAR
* The index climbed 0.4 percent to 9,572 points.
EGYPT
* The index added 1.2 percent to 7,572 points.
KUWAIT
* The index fell 0.5 percent to 5,374 points.
OMAN
* The index rose 0.2 percent to 5,820 points.
BAHRAIN
* The index lost 0.6 percent to 1,105 points.