Gulf stock markets rose on Sunday after oil made further gains and local companies reported mostly upbeat earnings and other positive news.
Brent crude, the benchmark for more than half the world’s oil, jumped 9.1 per cent last week, bringing gains in the past 10 days to 18 per cent, the best two-week rally since 1998.
Saudi Arabia’s stock index rose 1.8 per cent to its highest close since November 24 in heavy trade. Shares in Saudi Kayan Petrochemicals Co surged their daily 10 percent limit and its bigger affiliate Saudi Basic Industries (Sabic) jumped three per cent.
The kingdom’s oil ministry has allocated more natural gas to Saudi Kayan for it to expand ethylene production at its petrochemical complex in Jubail, the company said on Sunday. As part of the same deal, Sabic will reduce the marketing fees it charges Saudi Kayan, which will save the company SR280 million ($74.6 million) this year and SR600 million a year once its projects are completed, it said.
Saudi Arabian Mining Co (Ma’aden) surged 5.3 per cent to SR39.50 after AlBilad Capital said it maintained the stock’s fair value at SR39.62.
“Profitability indicators are expected to witness a significant improvement starting from this year with the launch of commercial production in many facilities,” it said.
Dubai’s index edged up 0.2 per cent and property developer Damac was one of the top gainers, surging 5.8 per cent.
The stock originally listed in London, but it joined the emirate’s bourse last month and its Dubai shares subsequently plunged by more than a third. It recovered those losses last week and its sharp rise may have attracted more investors.
The firm’s subsidiary Damac Real Estate Development Ltd reported a 46 per cent surge in 2014 profit last week and Damac, which plans to de-list from London, was due to review its own results and dividends later on Sunday.
Abu Dhabi’s bourse edged up 0.3 per cent as National Bank of Abu Dhabi and Abu Dhabi Commercial Bank rose 1.8 per cent and 2.1 per cent, respectively. Food and beverage firm Agthia Group gained 2.5 per cent after it reported a 22 per cent increase in 2014 profit.
Qatar’s benchmark climbed 0.8 per cent, with property firms Ezdan Holding and Barwa Real Estate, up three per cent and 4.3 per cent, respectively, as the main supports.
Egypt’s market slipped 0.1 per cent as property companies pulled back further after gaining strongly in the last few weeks. Developer Talaat Moustafa Group dropped 2.4 per cent, trimming its gains this year to 15.8 per cent. It is still well ahead of the benchmark, which has gained 11.6 per cent.
