Abu Dhabi’s Shares Lead Gulf Market Rally After Oil Price Jump
2015-01-18 14:59:06.596 GMT
By Sarmad Khan
(Bloomberg) -- Shares in Abu Dhabi rose to the highest
level in three weeks, leading gains in Gulf Arab markets, after
crude oil surged the most in more than two years. Dubai’s stocks
also advanced.
The ADX General Index added 1.7 percent to close at
4,555.27, the strongest since Dec. 28. First Gulf Bank PJSC led
the increase with a 2.4 percent jump. Dubai’s DFM General Index
rose 1.5 percent to the highest level in almost three weeks and
Qatar’s QE Index climbed 0.5 percent.
Brent, the benchmark for more than half the world’s oil,
surged 5.2 percent, the most since June 2012, to $50.17 a barrel
on Jan. 16. The International Energy Agency lowered its forecast
for supply from non-OPEC oil producers this year. Four out of
six Gulf Cooperation Council states are part of the 12-member
Organization of the Petroleum Exporting Countries.
“The oil price pulled up quite nicely over the weekend,
which is helping investor confidence in the regional markets,”
Saleem Khokhar, who helps oversee about $3 billion at NBAD Asset
Management Group, said by telephone from Abu Dhabi. “The move
today is purely sentiment driven.”
Oil fell almost 50 percent last year, the most since the
2008 financial crisis, after the highest pace of U.S. production
in more than three decades swelled supplies and OPEC resisted
calls to cut output. The decline in crude prices sent at least
six stock indexes in the GCC, home to about a third of the
world’s proven oil reserves, into bear markets since November.
Sabic Climbs
The valuation of Abu Dhabi’s shares rose to 11.2 times
estimated 12-month earnings, compared with 10.6 for MSCI Inc.’s
emerging markets index. The ADX’s 14-day relative strength index
rose to 53, the highest since November.
FGB rose to 17.15 dirhams. National Bank of Abu Dhabi PJSC,
the United Arab Emirates’ biggest bank by assets, jumped 4.2
percent, the sharpest increase since Jan. 13.
Shares in Saudi Arabia, the world’s biggest oil exporter,
climbed 0.9 percent. Saudi Basic Industries Corp., the
petrochemicals maker with the second-highest weighting on the
index, rose 1.5 percent even after a slide in profitability. The
company reported a 29 percent drop in fourth-quarter profit to
4.36 billion riyals ($1.16 billion) as lower oil prices reduced
returns.
The mean estimate of seven analysts was for 5.39 billion
riyals, according to data compiled by Bloomberg.
The weaker profit numbers were “widely expected by the
market,” Sebastien Henin, who oversees $100 million as head of
asset management at The National Investor in Abu Dhabi, said by
phone. “The increase in oil prices over the weekend has lent
good support to Sabic today.”
Israel Gains
Dubai Islamic Bank PJSC, the largest Shariah-compliant
lender in the U.A.E., led advancers in Dubai with a 1.4 percent
increase. Arabtec Holding Co., the biggest listed construction
company in the country, added 2.6 percent to 3.20 dirhams, the
strongest level since Dec. 28.
Elsewhere in the region, Kuwait’s SE Price Index climbed
0.8 percent and Oman’s MSM 30 Index added 1.1 percent. Bahrain’s
BB All Share Index advanced 0.4 percent. Egypt’s EGX 30 Index
declined 0.3 percent, the first drop in five days.
Israel’s TA-25 Index increased 0.3 percent to 1,466.94. The
yield on the country’s March 2024 bonds dropped one basis point
to 1.91 percent.
For Related News and Information:
Top Stories:TOP<GO>
More news on the U.A.E.: NI UAE BBG <GO>
Top regional stories: TOP MIDEAST <GO>
Gulf equity movers: TNI GULF MOV <GO>
Global market map: MMAP <GO>
Stories on Gulf stocks: TNI GULF STK <GO>
World equity index monitor: WEI <GO>
Most-read stock market stories: MNI STK <GO>
To contact the reporter on this story:
Sarmad Khan in Dubai at +971-4-3641045 or
skhan170@bloomberg.net
To contact the editors responsible for this story:
Samuel Potter at +971-4-3641050 or
spotter33@bloomberg.net
Dana El Baltaji
2015-01-18 14:59:06.596 GMT
By Sarmad Khan
(Bloomberg) -- Shares in Abu Dhabi rose to the highest
level in three weeks, leading gains in Gulf Arab markets, after
crude oil surged the most in more than two years. Dubai’s stocks
also advanced.
The ADX General Index added 1.7 percent to close at
4,555.27, the strongest since Dec. 28. First Gulf Bank PJSC led
the increase with a 2.4 percent jump. Dubai’s DFM General Index
rose 1.5 percent to the highest level in almost three weeks and
Qatar’s QE Index climbed 0.5 percent.
Brent, the benchmark for more than half the world’s oil,
surged 5.2 percent, the most since June 2012, to $50.17 a barrel
on Jan. 16. The International Energy Agency lowered its forecast
for supply from non-OPEC oil producers this year. Four out of
six Gulf Cooperation Council states are part of the 12-member
Organization of the Petroleum Exporting Countries.
“The oil price pulled up quite nicely over the weekend,
which is helping investor confidence in the regional markets,”
Saleem Khokhar, who helps oversee about $3 billion at NBAD Asset
Management Group, said by telephone from Abu Dhabi. “The move
today is purely sentiment driven.”
Oil fell almost 50 percent last year, the most since the
2008 financial crisis, after the highest pace of U.S. production
in more than three decades swelled supplies and OPEC resisted
calls to cut output. The decline in crude prices sent at least
six stock indexes in the GCC, home to about a third of the
world’s proven oil reserves, into bear markets since November.
Sabic Climbs
The valuation of Abu Dhabi’s shares rose to 11.2 times
estimated 12-month earnings, compared with 10.6 for MSCI Inc.’s
emerging markets index. The ADX’s 14-day relative strength index
rose to 53, the highest since November.
FGB rose to 17.15 dirhams. National Bank of Abu Dhabi PJSC,
the United Arab Emirates’ biggest bank by assets, jumped 4.2
percent, the sharpest increase since Jan. 13.
Shares in Saudi Arabia, the world’s biggest oil exporter,
climbed 0.9 percent. Saudi Basic Industries Corp., the
petrochemicals maker with the second-highest weighting on the
index, rose 1.5 percent even after a slide in profitability. The
company reported a 29 percent drop in fourth-quarter profit to
4.36 billion riyals ($1.16 billion) as lower oil prices reduced
returns.
The mean estimate of seven analysts was for 5.39 billion
riyals, according to data compiled by Bloomberg.
The weaker profit numbers were “widely expected by the
market,” Sebastien Henin, who oversees $100 million as head of
asset management at The National Investor in Abu Dhabi, said by
phone. “The increase in oil prices over the weekend has lent
good support to Sabic today.”
Israel Gains
Dubai Islamic Bank PJSC, the largest Shariah-compliant
lender in the U.A.E., led advancers in Dubai with a 1.4 percent
increase. Arabtec Holding Co., the biggest listed construction
company in the country, added 2.6 percent to 3.20 dirhams, the
strongest level since Dec. 28.
Elsewhere in the region, Kuwait’s SE Price Index climbed
0.8 percent and Oman’s MSM 30 Index added 1.1 percent. Bahrain’s
BB All Share Index advanced 0.4 percent. Egypt’s EGX 30 Index
declined 0.3 percent, the first drop in five days.
Israel’s TA-25 Index increased 0.3 percent to 1,466.94. The
yield on the country’s March 2024 bonds dropped one basis point
to 1.91 percent.
For Related News and Information:
Top Stories:TOP<GO>
More news on the U.A.E.: NI UAE BBG <GO>
Top regional stories: TOP MIDEAST <GO>
Gulf equity movers: TNI GULF MOV <GO>
Global market map: MMAP <GO>
Stories on Gulf stocks: TNI GULF STK <GO>
World equity index monitor: WEI <GO>
Most-read stock market stories: MNI STK <GO>
To contact the reporter on this story:
Sarmad Khan in Dubai at +971-4-3641045 or
skhan170@bloomberg.net
To contact the editors responsible for this story:
Samuel Potter at +971-4-3641050 or
spotter33@bloomberg.net
Dana El Baltaji