Middle Eastern Stocks Rally Led by Oman After Oil-Price Rebound
2015-08-30 13:59:51.503 GMT
By Yaacov Benmeleh, Sarmad Khan and Deema Almashabi
(Bloomberg) -- Omani stocks led a rally in most equity
markets across the Middle East after oil prices had the biggest-
weekly jump in more than six years.
The MSM30 Index advanced 1.5 percent, the most since
January, to 5,904.44 at the close in Muscat. Dubai’s DFM General
Index climbed 1.1 percent to the highest in more than a week,
and Saudi Arabia’s Tadawul All Share Index gained as much as 4.6
percent before closing 1.1 percent higher.
Brent crude closed 10 percent higher last week, trading
above $50 per barrel after data showed second-quarter growth in
the U.S. exceeded economist forecasts, spurring renewed investor
optimism over the global economic outlook. The six nations of
the Gulf Cooperation Council are home to about 30 percent of the
world’s proven reserves of oil, the price of which had plunged
this month on concern of an oversupply and slowing expansion in
China.
“It’s an unbelievable rally considering the battering oil
took in the past few weeks,” said Wadah Al Taha, the Dubai-based
chief investment officer of Al Zarooni Group, who favors
investing selectively in regional markets over the short term.
“The positive close in international markets, especially with
China rallying again and U.S. equities ending the week on a
positive note, is also helping sentiment.”
‘More Clarity’
The Standard & Poor’s 500 Index gained 0.9 percent last
week, masking a volatile period in which the U.S. benchmark
plunged the most since 2011 to enter a correction, only to rally
more than 6 percent over two days. The gauge is down 5.5 percent
for the month, the most since May 2012.
Saudi Arabia’s benchmark equity index entered a bear market
last week, and the DFM General Index recorded daily losses of as
much as 7 percent and gains of as much as 4.6 percent in the
same period. Brent crude closed below $45 per barrel for the
first time in six years on Aug. 24.
“There’s no doubt that the main reason for the Saudi market
rally is the significant increase in oil prices on Friday,” said
Mohammed Al-Suwayed, the Riyadh-based head of capital and money
markets at Adeem Capital. “I’m waiting for the August close on
Monday to make sure that there is no retracement in prices, but
I’m cautiously optimistic for the rest of the week.”
Qatar’s QE Index rose 0.4 percent and Kuwait’s SE Price
Index added 0.5 percent.
Today’s moves don’t “mean that we are in an uptrend,” Al
Taha said. “We need more clarity in terms of global economic
numbers and stability in oil prices to be able to determine
that.”
Abu Dhabi’s ADX General Index fell 0.2 percent and
Bahrain’s BB All Share Index slipped 0.1 percent.
Egypt Aid
While Egypt’s EGX 30 Index lost 0.3 percent, Emaar Misr for
Development, which in June held the country’s biggest initial
public offering since 2011, climbed 7.8 percent. That pares the
stock’s loss since its trading debut to 34 percent.
Next month, Saudi Arabia will provide Egypt $2.9 billion of
aid in the form of petroleum products and grants for economic
development, Al Mal newspaper reported today. North Africa’s
biggest economy has relied on financial assistance from Gulf
Arab allies since a military takeover in 2013.
Israel’s TA-25 Index climbed 0.5 percent, led by Nice
Systems Ltd. The country’s natural gas explorers, including
Delek Drilling LP and Avner Oil Exploration LLP, rose following
the increase in oil prices, according to Saar Golan, an equities
trader at Bank of Jerusalem Ltd. in Tel Aviv.
For Related News and Information:
Top Stories:TOP
--With assistance from Ahmed A. Namatalla in Cairo.
To contact the reporters on this story:
Yaacov Benmeleh in Tel Aviv at +972-3-542-7137 or
ybenmeleh@bloomberg.net;
Sarmad Khan in Dubai at +971-4-3641045 or
skhan170@bloomberg.net;
Deema Almashabi in Riyadh at +966-11-211-8033 or
dalmashabi@bloomberg.net
To contact the editors responsible for this story:
Samuel Potter at +971-4-3641050 or
spotter33@bloomberg.net
Shaji Mathew
2015-08-30 13:59:51.503 GMT
By Yaacov Benmeleh, Sarmad Khan and Deema Almashabi
(Bloomberg) -- Omani stocks led a rally in most equity
markets across the Middle East after oil prices had the biggest-
weekly jump in more than six years.
The MSM30 Index advanced 1.5 percent, the most since
January, to 5,904.44 at the close in Muscat. Dubai’s DFM General
Index climbed 1.1 percent to the highest in more than a week,
and Saudi Arabia’s Tadawul All Share Index gained as much as 4.6
percent before closing 1.1 percent higher.
Brent crude closed 10 percent higher last week, trading
above $50 per barrel after data showed second-quarter growth in
the U.S. exceeded economist forecasts, spurring renewed investor
optimism over the global economic outlook. The six nations of
the Gulf Cooperation Council are home to about 30 percent of the
world’s proven reserves of oil, the price of which had plunged
this month on concern of an oversupply and slowing expansion in
China.
“It’s an unbelievable rally considering the battering oil
took in the past few weeks,” said Wadah Al Taha, the Dubai-based
chief investment officer of Al Zarooni Group, who favors
investing selectively in regional markets over the short term.
“The positive close in international markets, especially with
China rallying again and U.S. equities ending the week on a
positive note, is also helping sentiment.”
‘More Clarity’
The Standard & Poor’s 500 Index gained 0.9 percent last
week, masking a volatile period in which the U.S. benchmark
plunged the most since 2011 to enter a correction, only to rally
more than 6 percent over two days. The gauge is down 5.5 percent
for the month, the most since May 2012.
Saudi Arabia’s benchmark equity index entered a bear market
last week, and the DFM General Index recorded daily losses of as
much as 7 percent and gains of as much as 4.6 percent in the
same period. Brent crude closed below $45 per barrel for the
first time in six years on Aug. 24.
“There’s no doubt that the main reason for the Saudi market
rally is the significant increase in oil prices on Friday,” said
Mohammed Al-Suwayed, the Riyadh-based head of capital and money
markets at Adeem Capital. “I’m waiting for the August close on
Monday to make sure that there is no retracement in prices, but
I’m cautiously optimistic for the rest of the week.”
Qatar’s QE Index rose 0.4 percent and Kuwait’s SE Price
Index added 0.5 percent.
Today’s moves don’t “mean that we are in an uptrend,” Al
Taha said. “We need more clarity in terms of global economic
numbers and stability in oil prices to be able to determine
that.”
Abu Dhabi’s ADX General Index fell 0.2 percent and
Bahrain’s BB All Share Index slipped 0.1 percent.
Egypt Aid
While Egypt’s EGX 30 Index lost 0.3 percent, Emaar Misr for
Development, which in June held the country’s biggest initial
public offering since 2011, climbed 7.8 percent. That pares the
stock’s loss since its trading debut to 34 percent.
Next month, Saudi Arabia will provide Egypt $2.9 billion of
aid in the form of petroleum products and grants for economic
development, Al Mal newspaper reported today. North Africa’s
biggest economy has relied on financial assistance from Gulf
Arab allies since a military takeover in 2013.
Israel’s TA-25 Index climbed 0.5 percent, led by Nice
Systems Ltd. The country’s natural gas explorers, including
Delek Drilling LP and Avner Oil Exploration LLP, rose following
the increase in oil prices, according to Saar Golan, an equities
trader at Bank of Jerusalem Ltd. in Tel Aviv.
For Related News and Information:
Top Stories:TOP
--With assistance from Ahmed A. Namatalla in Cairo.
To contact the reporters on this story:
Yaacov Benmeleh in Tel Aviv at +972-3-542-7137 or
ybenmeleh@bloomberg.net;
Sarmad Khan in Dubai at +971-4-3641045 or
skhan170@bloomberg.net;
Deema Almashabi in Riyadh at +966-11-211-8033 or
dalmashabi@bloomberg.net
To contact the editors responsible for this story:
Samuel Potter at +971-4-3641050 or
spotter33@bloomberg.net
Shaji Mathew