PHOTO
DUBAI- Gulf stock markets mostly rebounded from several days of weakness on Wednesday, encouraged by strong oil prices, though Emaar Development sank on its debut after Dubai's first big initial public offering since 2014.
Emaar Development
EMAARDEV.DU
, the local property development unit of Emaar Properties
EMAR.DU
, closed at 5.77 dirhams, down from its IPO price of 6.03 dirhams, which represented its net asset value according to an estimate by consultants JLL.
The weak debut underlined two factors weighing heavily on Dubai. Its real estate market has been slumping for over two years as low oil prices cause governments around the region to cut spending and impose new taxes, slowing economic growth.
Meanwhile, rising tensions between Saudi Arabia and Iran over instability in Lebanon and the conflict in Yemen have increasingly worried investors.
But Dubai's index
.DFMGI
closed 1.0 percent higher as Emaar Properties, which had been falling in the days ahead of its unit's listing, rebounded 2.6 percent.
Only 48.4 million Emaar Development shares traded on Wednesday against 800 million sold in the IPO, suggesting institutional investors were generally hanging on to the stock because of its high annualised dividend yield, estimated by SICO Bahrain at 9 percent for the next three years.
GFH Financial
GFH.DU
, by far the most heavily traded Dubai stock by volume, surged 6.1 percent after saying it had started talks with Saudi Arabian authorities to cross-list its shares in Riyadh.
Saudi Arabia's index
.TASI
rose 0.7 percent in a broad-based rebound as gainers outnumbered decliners by 140 to 41. Petrochemical investor Alujain
2170.SE
jumped its 10 percent daily limit in heavy trade.
Qatar's index
.QSI
added 0.4 percent as drilling rig provider Gulf International Services
GISS.QA
, the most heavily traded stock, surged 6.3 percent. It had been trading near eight-year lows.
The Qatari market shrugged off news that international equity index compiler MSCI may shift to using offshore foreign exchange rates to value Qatar's market because sanctions against Doha have made it more difficult for foreign investors to obtain riyal onshore.
Offshore riyal rates are weaker than onshore rates and if the move went ahead, it could lead to changes in the weighting of Qatari stocks in MSCI's emerging market index.
Abu Dhabi's index
.ADI
fell 0.9 percent as telecommunications blue chip Etisalat
ETEL.AD
retreated 1.2 percent.
HIGHLIGHTS
SAUDI ARABIA
* The index
.TASI
rose 0.7 percent to 6,822 points.
DUBAI
* The index
.DFMGI
climbed 1.0 percent to 3,445 points.
ABU DHABI
* The index
.ADI
dropped 0.9 percent to 4,274 points.
QATAR
* The index
.QSI
added 0.4 percent to 7,798 points.
EGYPT
* The index
.EGX30
increased 0.8 percent to 13,839 points.
KUWAIT
* The index
.KWSE
edged down 0.04 percent to 6,229 points.
BAHRAIN
* The index
.BAX
gained 0.4 percent to 1,269 points.
OMAN
* The index
.MSI
edged up 0.02 percent to 5,078 points.
(editing by John Stonestreet) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
Emaar Development
The weak debut underlined two factors weighing heavily on Dubai. Its real estate market has been slumping for over two years as low oil prices cause governments around the region to cut spending and impose new taxes, slowing economic growth.
Meanwhile, rising tensions between Saudi Arabia and Iran over instability in Lebanon and the conflict in Yemen have increasingly worried investors.
But Dubai's index
Only 48.4 million Emaar Development shares traded on Wednesday against 800 million sold in the IPO, suggesting institutional investors were generally hanging on to the stock because of its high annualised dividend yield, estimated by SICO Bahrain at 9 percent for the next three years.
GFH Financial
Saudi Arabia's index
Qatar's index
The Qatari market shrugged off news that international equity index compiler MSCI may shift to using offshore foreign exchange rates to value Qatar's market because sanctions against Doha have made it more difficult for foreign investors to obtain riyal onshore.
Offshore riyal rates are weaker than onshore rates and if the move went ahead, it could lead to changes in the weighting of Qatari stocks in MSCI's emerging market index.
Abu Dhabi's index
HIGHLIGHTS
SAUDI ARABIA
* The index
DUBAI
* The index
ABU DHABI
* The index
QATAR
* The index
EGYPT
* The index
KUWAIT
* The index
BAHRAIN
* The index
OMAN
* The index
(editing by John Stonestreet) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))