DUBAI: Stock markets in Qatar and the United Arab Emirates outperformed the region yesterday after index compiler MSCI raised the two countries’ weights in its emerging markets index in a move promising fresh foreign fund inflows.
In a semi-annual review, published at the end of last week and taking effect at the end of this month, MSCI removed a 0.5 “adjustment factor” for a number of stocks which it had introduced in May because of accessibility problems for foreign investors.
It also increased the “foreign inclusion factor” for UAE’s First Gulf Bank (FGB), doubling its weight, and added Qatar’s Gulf International Services to the emerging markets benchmark.
Abu Dhabi’s index rose 1.6 percent, largely on the back of FGB, which jumped 5.3 percent. Shares in investment firm Waha Capital surged 7 percent to Dh2.92 after the company said its third-quarter profit more than doubled.Waha’s shares broke technical resistance at Dh2.85, the late October peak, triggering a bullish right triangle formed by the highs and lows since mid-October and pointing up to Dh3.16.
Meanwhile, shares in Union National Bank dropped 5.2 percent. Investors had hoped it would also become part of the MSCI index following the November review, but MSCI chose not to include the stock. Dubai’s benchmark rose 1.1 percent. Heavyweights Emaar Properties and Dubai Islamic Bank added 2 and 0.3 percent respectively after MSCI increased their weights.
Real estate developers Deyaar and Union Properties added 1.9 and 1.8 percent, while construction firm Drake & Scull rose 0.9 percent. MSCI added the three names to its UAE small-cap index.
Qatar’s main index added 0.8 percent as blue chips Qatar National Bank and Industries Qatar rose 1.7 and 1.4 percent in response to MSCI weight increases. Also on MSCI’s list were Doha Bank, which gained 1.2 percent, and Commercial Bank of Qatar, up 0.7 percent. New emerging markets index constituent Gulf International Services rose 1.9 percent.
Analysts estimate the UAE and Qatar could each attract around $1bn in total of additional foreign funds because of the latest MSCI decision — not much compared to their national market capitalisations of around $200bn, but enough to stimulate trade in the short term.
Shares in developer Barwa Real Estate surged 7.6 percent, continuing a leg up which began last week after the firm launched a QR500m ($137m) commercial development near downtown Doha and bought a 50 percent stake in Lusail Golf Development for QR2.48bn.
Akber Khan, director of asset management at Al Rayan Investment in Doha, said trading volume in the stock indicated interest from institutional investors. “This is clearly institutional buying because five million shares traded is a lot of money,” he said.
Saudi Arabia’s index edged up 0.4 percent as telecommunications operator Mobily rose 3.9 percent, rebounding after tumbling by its 10 percent daily limit for three sessions in a row.
Egypt’s benchmark edged down 0.5 percent as most blue chips pulled back. Shares in Commercial International Bank fell 0.4 percent and brokerage EFG Hermes was down 1.7 percent. Shares in Palm Hills, Egypt’s second-largest listed real estate developer, fell 2.3 percent.
HIGHLIGHTS
DUBAI: The index rose 1.1 percent to 4,453 points.
ABU DHABI: The index added 1.6 percent to 4,867 points.
SAUDI ARABIA: The index edged up to 9,689 points.
EGYPT: The index edged down 0.5 percent to 9,373 points.
KUWAIT: The index rose 0.7 percent to 7,183 points.
OMAN: The index slipped 0.2 percent to 6,905 points.
BAHRAIN: The index edged up 0.1 percent to 1,443 points.
Reuters
DOHA: The Qatar Exchange (QE) will disclose major shareholders who own 5 percent or more of the listed company’s capital, the Qatari bourse said yesterday. The bourse will start the daily disclosures beginning January 4, 2015. The decision is part of the regulator’s renewed efforts to closely monitor the market needs.
The Peninsula
