Mideast Stocks: Gulf markets bounce back as trade war simmers down

Qatar, Abu Dhabi end six days of losses

  
An investor (L) gestures to an electronic display board at the Dubai International Financial Market, March 24, 2010.

An investor (L) gestures to an electronic display board at the Dubai International Financial Market, March 24, 2010.

REUTERS/Mohammed Salem

Gulf stocks rebounded from their recent losses on Tuesday as markets' renewed fears about an escalating global trade war eased, with Beijing stepping in to stabilise the yuan and Washington dismissing fears of a lengthy trade war with China.

The recovery was led by financial shares. Abu Dhabi and Qatar's share indexes had suffered six days of straight losses each, while Saudi Arabia and Dubai's bourses retreated in the previous five and four consecutive sessions, respectively, on fears over the trade dispute between the world's two biggest economies.

Saudi's index rose 1.1% with Riyad Bank increasing 4.4% and Al Rajhi Bank gaining 1.1%.

Some robust earnings from insurers added to the index gains. United Cooperative Assurance jumped 6% after its pre-zakat second-quarter profit more than doubled, while Gulf General Insurance , which swung to profit for the same period, surged 7.9%. 

Dubai's index was up 1.2% as Dubai Islamic Bank advanced 2% and Emirates NBD traded 1.8% up.

Qatar’s index also rose 1.2%. Qatar Islamic Bank increased 1.7% while Qatar Gas Transport closed 4.1% higher.

In Abu Dhabi, the index gained 0.7% with First Abu Dhabi BankFAB.AD edging up 0.5% and Emirates Telecommunications Group climbing 2%.

Outside the Gulf, Egypt's blue-chip index moved 1.7% higher. Egypt Kuwait Holding leapt 6.9%. On Tuesday, it obtained a regulatory nod for land allocations concerning agricultural projects which would provide raw materials to its planned compressed wood factory. 

(Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru; Editing by Hugh Lawson) ((shakeel.ahmad@thomsonreuters.com;))

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