JEDDAH/DUBAI: Gulf Arab markets were mixed on Wednesday as investors remained cautious ahead of third-quarter results, but markets in United Arab Emirates all touched year-highs as sentiment firmed up further.
Bank stocks lifted Abu Dhabi to close up 1.3 percent 3,204 points, while telecom firm Zain helped Kuwait’s benchmark gain 0.6 percent. Dubai, Saudi Arabia and Qatar bourses all ended about 0.4 percent lower.
In Abu Dhabi, First Gulf Bank led gains rising almost 4 percent and closing at a year-high as the index touched its highest levels this year in intra-day trading.
The Tadawul All-Share Index (TASI) closed at 6,314.78 points. The market slipped with only three of the sectors closing with gains, namely the Cement, Agriculture & Food Industries and Telecom & IT, which closed with gains of 0.12 percent, 0.60 percent and 0.22 percent respectively. On the other hand, the negative sector closes ranged from 0.02 percent for the Insurance sector to 1.16 percent for the Multi-Investment sector. Overall market breadth was negative, with 38 advancers and 84 decliners, giving an AD ratio of 0.45, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary on Wednesday. The Dubai stock index fell 0.4 percent to 2,265 points. “Expect the market to consolidate tomorrow (Thursday) early on before taking direction from the other Gulf markets and Europe,” EFG-Hermes said in a note. “Investors have one eye on Q3 earnings now and buying large caps in anticipation of earnings hasn’t proved to be a lucrative plan in recent times.”
Investors could be buoyed by better-than-expected results from Qatar National Bank (QNB), the Gulf state’s largest, which said on Wednesday third-quarter earnings fell 7.5 percent, but exceeded analyst expectations.
QNB closed flat as the market slipped, led by Commercial Bank of Qatar. The Qatari index closed at 7,596 points. Emaar Properties bucked the downward trend in Dubai, taking its gains to over 7 percent since it said on Monday its proposed merger with Dubai Holding was still being evaluated.
Union Properties shed almost 2 percent despite saying it expected better third-quarter results. Investors piled into the stock on Tuesday after the general manager at Dubai’s third-largest developer said he expected a “remarkable” quarterly net profit, driven by delivery of new units.
Kuwait’s Zain extended gains into a second session. Kuwait’s Kharafi Group, which has inked a deal with Asian investors to sell a 46 percent stake in Zain, could sell a majority stake in the telecoms firm if needed, a senior Kharafi official said on Tuesday.
Analysts say the stock is likely to experience much volatility as it becomes the target of speculators while a stake sale is completed.
Last month, Kuwaiti conglomerate Kharafi Group said it had agreed to sell 46 percent of Zain to a consortium led by India’s Vavasi Group and including telecoms firms Bharat Sanchar Nigam and Mahanagar Telephone Nigam and Malaysian billionaire Syed Mokhtar Al-Bukhary.
The Kuwaiti index rose 0.6 percent to 7,883 points. The Bahrain stock index climbed 0.7 percent to just under 1,600 points.
— With input from agencies
