JEDDAH – Shares on the Saudi and Qatari bourses advanced, although Doha’s index traded flat for much of the session. Oil prices rose to above $100 Monday, bringing some respite to volatility and helping lift Saudi stocks.
Saudi stock benchmark Tadawul Al Share Index rose 0.61 percent to 6,790.96 points.
Other Gulf bourses came under selling pressure however on domestic issues.
Investors booked profits in Kuwait where the index slipped 0.6 percent after Sunday’s gains. Banking stocks came under selling pressure, with Boubyan Bank falling 1.7 percent and Kuwait Finance House slipping 1.4 percent.
"I think that there’s a profit taking activity," says Safaa Zbib, head of research at Kuwait & Middle East Financial Investment Co, adding the majority of Sunday’s trading focused on buying. "In addition, banks stocks are heavily impacting on the market."
Stock markets in the United Arab Emirates took their cue from an improvement in global sentiment which tempted buyers and led Dubai’s bourse to its biggest gain in three weeks.
Shares, commodities and the euro rallied early on Monday after euro zone ministers agreed to lend Spain up to $125 billion to shore up the banking sector and avoid a fiscal collapse.
Most blue chip stocks rose on the Dubai index, helped by real estate and related sectors. Bellwether Emaar Properties rose 0.7 percent as did builder Arabtec . Drake & Scull advanced 2.1 percent.
Abu Dhabi index advanced 0.4 percent to 2,463 points.
Dubai index climbed 1.1 percent to 1,483 points.
Qatar benchmark rose 0.2 percent to 8,315 points.
Kuwait measure fell 0.6 percent to 6,072 points.
Bahrain measure slipped 0.2 percent to 1,135 points.
Oman index eased 0.2 percent to 5,744 points.
Egypt benchmark fell 1.7 percent to 4,394 points.
"The strong closing of Saudi market (Sunday), optimism on Spanish news, China rate cuts ... and the rally in Asian markets have all contributed to the positive sentiment," said Joice Mathew at United Securities in Muscat.
The index climbed 1.1 percent, outperforming neighbouring markets in its highest close since May 22.
"In Dubai, there is no real catalyst but the momentum is there," said Musa Haddad, head of investment advisory and trading services at National Bank of Abu Dhabi.
"These levels are very low and medium- to long-term investors should start accumulating."
Abu Dhabi’s index also rose, ending 0.4 percent higher. Real estate developers Aldar Properties and Sorouh both gained after updating markets on Sunday about progress on their merger plans.
Aldar ended 0.9 percent higher, and Sorouh added 1 percent. – SG/Reuters