Bahrain profits as Gulf markets slip

Published May 17th, 2012 - 10:36 GMT
Dubai shares ended at a 15-week low yesterday and most other Gulf markets retreated, as slipping oil prices
Dubai shares ended at a 15-week low yesterday and most other Gulf markets retreated, as slipping oil prices

The Bahrain All-Share Index yesterday closed at 1,156.31 points, marking an increase of 0.46 points above its previous closing. Banking and services sector stocks were the top gainers. 

The Bahrain Bourse witnessed 33 transactions with a volume of 510.078 shares worth a total value of BD61,646. Elsewhere, Dubai shares ended at a 15-week low yesterday and most other Gulf markets retreated, as slipping oil prices and concerns over a debt crisis in Europe worsening kept investors away.

Fears that a Greek exit from the eurozone will worsen the debt crisis facing other European nations gripped global financial markets, sending shares and other riskier assets lower.

Dubai's index fell 1.4 per cent, tracking global stocks, its lowest close since February 2. Shares of all but two companies declined.
Bellwether Emaar Properties dropped 1.7pc, Arabtec shed 1pc and Deyaar lost 4.3pc. Dubai Islamic Bank dropped 2.1pc. "Dubai's performance in coming days will clearly depend on the global conditions and volatility in the commodities and international markets," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments.

There was no indication of commitment from investors who are wary of adding to the risk by holding on to shares, he said. "This is not a major selloff, it's just the market losing ground due to lack of commitment from international and regional investors," Shurrab added.

Around 61 million shares traded on the Dubai bourse, much lower than the peaks seen during an early-year rally. Neighbouring Abu Dhabi's bourse also retreated, falling 0.3pc to its lowest finish since February 13.

Egypt's bourse retreated for a second day as investors took safe positions ahead of a presidential election that is unlikely to clear up an uncertain economic outlook. The index dropped 1pc, with all shares of all but two shares declining. Saudi Arabia's bourse recovered from a 12-week intraday low, but ended slightly lower with petrochemical and banking stocks weighing as investors cut their exposure.
"There's still a lot of selling pressure.

The correlation between the crude price fall and the Saudi market is also much higher now," said a trader who declined to be identified. Bellwether Saudi Basic Industries Corp. dropped 0.5pc to its lowest close since February 19.

In Qatar, the index lost 0.3pc. Kuwait's index eased 0.06pc, with telecoms operator Zain dropping 2.7pc. Logistics firm Agility slipped 1.2pc after it reported an 8.1pc drop in first-quarter profit.

Meanwhile, Oman's index bucked the trend, climbing 1pc. "Oman saw a small bounce-back after a sharp fall," said Kanaga Sundar, head of research at Gulf Baader Capital Markets. "Local institutions are supporting and that's one of the key reason for the rally today."


© 2019 News of Bahrain

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