Doha: Qatar Exchange was down 12.91 points or 0.15 percent to 8,656.11 points yesterday from the previous closing of 8,669.02. Among the top losers were Industries Qatar whose share dropped 1.20 percent to QR164, Barwa Real Estate lost 0.89 percent to QR27.90, Doha Insurance fell 0.90 percent to Q27.50 and Gulf International was down 1.10 percent to QR31.45.
The banking and financial sector dropped 0.04 points, the insurance sector was down 0.14 points, the industrial sector lost 0.60 points and the services sector added 0.07 points.
Meanwhile, an initial merger agreement between Abu Dhabi’s top two developers yesterday added fuel to a rally on UAE bourses driven by bets of strong fourth-quarter earnings, while other regional markets also rose.
Shares in Aldar Properties and Sorouh Real Estate jumped 6.4 and 7.2 percent respectively after sources familiar with the matter told Reuters that the pair had reached an initial agreement to create a combined entity with assets worth more than $15bn. The number of shares changing hands in Abu Dhabi surged to 195 million, the highest daily volume since March 2012.
Abu Dhabi’s index climbed 0.6 percent to its highest finish since July 2011. “The merger report boosted the retail investor sentiment to be more aggressive in other stocks as well,” Marwan Shurrab, vice-president and chief trader at Gulfmena Investments, said. “People are positioning themselves in anticipation of growth in 2013, as well as strong Q4 results and dividends.”
Dubai’s measure hit a 10-month high, rising 2.1 percent. Volumes also surged to 346 million, the most shares traded in one session since April last year. Builder Arabtec jumped 5.3 percent after winning a $653m contract to construct the Abu Dhabi branch of France’s Louvre museum, while Emaar Properties climbed 3 percent. Small-caps dominated trade though, with Gulf Navigation and Deyaar Development advancing 4.2 and 4.3 percent respectively.
In Cairo, the bourse extended gains to touch a 10-week high as investors bet on an improving economy. A senior IMF official met Egypt’s government on Monday to discuss a vital $4.8bn loan as the Islamist-led state battles to contain a currency crisis set off by political turmoil that is depleting its foreign reserves.
IMF said it is committed to supporting Egypt and the country expects a visit from an IMF technical committee in two-three weeks, a presidential spokesperson said. “The sentiment is quite positive - the IMF news is a catalyst and a new constitution is in place so the political scene is more stable than last year,” said Mohamed Radwan, director of international sales at Pharos Securities. “Some are betting it can again give a positive performance.”
The benchmark index rose 1.2 percent in its sixth straight gain. It advanced a whopping 50.8 percent in 2012, the best performing market among regional peers. Commercial International Bank and Orascom Construction Industries gained 3 and 1.5 percent respectively. Palm Hills Development rose 4.3 percent and Egyptian Resorts jumped 7.2 percent.
Elsewhere, Saudi Arabia’s index gained 0.6 percent to a near 16-week high. Banks lent support after Banque Saudi Fransi (BSF) beat local analysts’ estimates with a 22.2 percent jump in fourth-quarter net profit. “The +39 percent year-on-year growth in non-lending income was a key driver of the earnings beat,” Riyad Capital said in a note, adding benign non-performing loans, rising asset yields and further loan growth would help BSF’s performance in 2013. The bank’s shares gained 3.7 percent, while the wider banking index advanced 1.9 percent.
Shares in developer Dar Al Arkan dropped 6.1 percent after the company said its fourth-quarter net profit halved year-on-year as finance costs rose and property sales generated lower margins. Net profit for the final three months of 2012 was SR144m ($38.4m).
HIGHLIGHTS
ABU DHABI: The index climbed 0.6 percent to 2,723 points.
DUBAI: The index rose 2.1 percent to 1,728 points.
EGYPT: The index rose 1.2 percent to 5,804 points.
SAUDI ARABIA: The index gained 0.6 percent to 7,053 points.
QATAR: The index slipped 0.2 percent to 8,656 points.
KUWAIT: The index gained 0.4 percent to 6,043 points.
OMAN: The index advanced 0.2 percent to 5,779 points.
BAHRAIN: The index climbed 1 percent to 1,066 points.
Reuters
