GCC stocks move sideways

Dubai: GCC stock markets demonstrated a mixed performance on Sunday with Dubai and Saudi shares moving higher, while their Qatari peers underperformed as they underwent intense selling pressure from the lenders.

Saudi Arabia's benchmark index ticked up 0.6 per cent to trade at 10,049 points. The gains were spread across the sectors with material, financial and telco share contributing more than others to the upward movement. Al Rajhi Bank, Saudi Basic Industries and Saudi Telecom all added value on a day that saw 131 stocks climb against lagging 47.

Dubai Financial Market surged as high as 1.3 per cent during the session before heading back to settle at 0.1 per cent for the day in what was its third successive advance mainly on the back of real estate stocks. The index resumed the upside rally late last month when reports surfaced about the property business making a turnaround led by a select set of segments which helped stabilize the property prices.

Gains pouring in

Robust quarterly numbers from Emaar Properties and Deyaar Development backed up the recovery claims, handing a good enough reason for the rally to go on. The gauge has moved upward in 11 of last 16 sessions, accumulating around 6 per cent gains year-to-date after earlier wiping out all its advances as the resurging pandemic replaced investor hopes with fears about the economic activity getting back to normal anytime soon.

Dubai index had to be content with a meagre 0.1 per cent advance for the day as banking stocks capped the gains in their real estate peers. Emirates NBD pulled back 2.1 per cent acting as the biggest drag in terms of negative weightage on the index.

Volatile

Air Arabia also dipped 3 per cent abandoning around half of the 6.4 per cent rise scored the prior session. The stock has been volatile in recent days amid conflicting reports of strong recovery in some major economies and reintroducing of lockdowns in others, clouding the outlook of aviation industry.

In Abu Dhabi, more stocks traded higher than those headed lower but the underperformance by more heavyweight banking shares meant the index closed the day 0.1 per cent down at 6,124 points. First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Abu Dhabi Islamic Bank turned back to eclipse gains in the likes of Gulf Pharmaceutical Industries, Dana Gas and International Holding.

Giving up advances

Qatar Exchange dropped 1.3 per cent at 10,761 points, pulling back from hefty gains in the previous session after the government approved a draft law paving way towards full ownership of listed companies by foreign investors. Industries Qatar and lenders led the losses.

The index is one of least performing ones in the region and the government move on foreign ownership had given some hope but the euphoria proved short-lived in the absence of solid policy steps that would pull the economy from the virus impact.

Earnings lag

Financials pushed Kuwait premier index down while they led advances of Bahrain shares. Oman's 30-company index dropped 0.7 per cent as the telecom firm Ooredoo Oman plunged 6.5 per cent after its first-quarter profits dropped by a quarter to OR4.6 million, whereas revenues slipped over 4 per cent to OR64.4 million.



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