Gulf stocks rebound as global markets stabilise

Gulf bourses rebounded early Tuesday after global oil and equity markets stabilised for the time being at least, encouraging local investors to buy blue-chip stocks with attractive valuations.

In Qatar, the index jumped 3.9 percent in the first 20 minutes, pulling away from multi-year lows.

Masraf Al Rayan surged 9.9 percent and was the best-performing stock. Qatar’s second-largest bank by market value reported a 3 percent fall in fourth-quarter net profit to 559 million riyals ($153.5 million), compared to analysts’ forecast of 553 million riyals.

Qatar National Bank was up 2.3 percent. The largest lender by market value in Qatar reported a 5.3 percent increase in fourth-quarter profit last week. Fitch Ratings affirmed QNB’s long-term issuer rating at ‘AA-‘ with a stable outlook.

“The government has demonstrated strong commitment to its banks and key public-sector companies and we expect this to continue despite the effects of lower oil prices,” Fitch said on Monday.

Dubai’s stock index traded up 2.9 percent in modest volumes. Builder Arabtec and real estate firm Deyaar each rose more than 4.0 percent.

Abu Dhabi’s bourse climbed 1.0 percent as investors bought blue-chip stocks which had recently seen their valuations plunge. First Gulf Bank and Abu Dhabi Commercial Bank rose 1.0 and 1.3 percent respectively, heading towards a second day of gains. National Bank of Abu Dhabi climbed 1.2 percent.

Source: Reuters