Dubai stocks make largest gain in 15 months
Published: Mar 13, 2011 23:31 Updated: Mar 13, 2011 23:31
DUBAI: Kuwait's Zain hit a month-high on Sunday after receiving a new bid for a stake in its Saudi unit, while Gulf Arab stocks rose.
Dubai's index made its largest gain in 15 months, Saudi Arabia edged up to a three-week high and Qatar rose for a fifth session, but analysts were cautious, warning a likely weaker opening in Asia on Monday following Japan's devastating earthquake would spark regional profit taking, Reuters said.
Telecoms operator Zain climbed 4.4 percent and affiliate Zain Saudi, rose 9.2 percent. Kingdom Holding Co. up 6.9 percent.
UAE Etisalat's $12 billion takeover offer of Zain depends on the latter selling its Zain Saudi holding, with Etisalat active in the kingdom through unit Mobily.
Etisalat climbed 0.9 percent, while Batelco ended flat.
The Tadawul All-Share Index (TASI) closed 0.2 percent higher at 6,309.63 points. The sector activity for the day was all positive except 2 losing sectors. The gaining sector ranged from 0.20 percent by the Banks & Financial Services sector to 2.13 percent by the Hotel & Tourism sector. The overall market breadth for the day was positive with 91 advancers against 41 decliners giving it an AD ratio of 2.21, the Financial Transaction House (FTH) — licensed by the Capital Market Authority — said in its daily market commentary.
The stock market turnover for the day reached SR6.65 billion.
Kuwait's index climbed 1.8 percent to 6,396 points and Dubai's rose 4.3 percent to 1,513 points, its biggest gain since Dec. 14, 2009, as both benchmarks rally from the six-year lows of early March, Reuters said.
Emaar Properties and Arabtec added 10.1 and 7.3 percent respectively, with this pair accounting for more than a third of Dubai trade, while in Abu Dhabi, Dana Gas gained 3.3 percent.
"There's a relief rally," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
"Once things have settled down, we will see a lot more individual stocks gain, namely Emaar, Arabtec and Dana Gas."
Dubai Islamic Bank (DIB) rose 2.8 percent after its fourth-quarter profit fell 62 percent, but beat analysts' forecasts.
"We rate the stock neutral, as DIB is most exposed to the real estate sector of all UAE banks, and its relatively high valuation," Jaap Meijer, AlembicHC senior analyst wrote in a research note.
UAE property prices are seen making further double-digit declines.
Qatar's measure climbed 2.8 percent to 8,457 points.
The Omani index climbed 1.3 percent to 6,416 points.
The Bahraini index climbed 0.4 percent to 1,417 points.