|14 July, 2019

Mideast Stocks: Banks boost Saudi, Aldar strong in Abu Dhabi

Union Properties, Emaar Properties up in Duba

Investors speak as they monitor stocks at the Abu Dhabi Securities Exchange. Image for illustrative purposes only.

Investors speak as they monitor stocks at the Abu Dhabi Securities Exchange. Image for illustrative purposes only.

REUTERS/Stringer

DUBAI- Major Gulf stock markets closed higher on Sunday, mirroring gains late last week in global markets, and supported by some companies' positive second-quarter results.

In Saudi Arabia, the Tadawul main index rose 0.5%, with banks and petrochemical companies leading the gains.

Dubai's Arqaam Capital said in a research note last week it expected Saudi Arabia to deliver the strongest second-quarter earnings performance in the Gulf.

"We, however, expect growth to peter out as (the) rate cut cycle kicks in, given the significant positive ALM (asset liability management) position of KSA (Saudi) banks," it said.

Alinma Bank 1150.SE rose 1.2%, while Al Rajhi Banking and Investment Corp gained 1%.

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) gained 3.2% after reporting an 11% increase in second-quarter revenues to 2.06 billion riyals ($549.26 million). 

Petchem firms Saudi Kayan Petrochemical Co and Saudi Basic Industries Corp (SABIC) rose 1.2% and 0.5%, respectively.

The Dubai index rose 0.7%, lifted by property developers Union Properties, up 3.6%, and heavyweight Emaar Properties, up 1%.

In Abu Dhabi, where the index was up 0.1%, blue chip Aldar Properties gained 3.9%.

The company said last week it had partnered with the Abu Dhabi government to deliver projects worth 5 billion dirhams ($1.36 billion).

Abu Dhabi-based Waha Capital was among the top performers, up 5.3%.

Waha, which has seen its stocks tumble around 50% since the beginning of the year, has been in talks with another investment firm, Gulf Capital, regarding a merger, sources told Reuters earlier this year.

Recent changes at management level might suggest the company is charting a new growth strategy. 

In Egypt, the index shed 1%, as Orascom Investment Holding dropped 3.9%. Orascom's stocks last week soared after the firm's board withdrew an offer to acquire Nile Sugar.

(Reporting by Davide Barbuscia; Editing by Mark Potter) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))

More From Markets