Gulf Markets Rise After Oil’s Rally

Gulf stock markets rose on Sunday after oil made further gains and local companies reported mostly upbeat earnings and other positive news.

Brent crude jumped 2.2 percent to $57.80 per barrel on Friday, posting its largest two-week gain in 17 years because of falling oil rig counts and violence in producer Libya.
Saudi Arabia’s stock index rose 1.8 percent to its highest close since Nov. 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 3.0 percent.
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 280 million riyals ($74.6 million) this year and 600 million riyals a year once its projects are completed, it said.
Saudi Arabian Mining Co (Ma’aden) surged 5.3 percent to 39.50 riyals after AlBilad Capital said it maintained the stock’s fair value at 39.62 riyals.
“Profitability indicators are expected to witness a significant improvement starting from this year with the launch of commercial production in many facilities,” it said.
In a sign that some money is flowing back into Saudi stocks from abroad after pulling out during the oil price plunge in December, the U.S. dollar/Saudi riyal spot rate dropped back to 3.7510 on Sunday, very close to its peg.
The exchange rate had climbed in recent weeks as high as 3.7605 – its highest level since January 2010, when markets were in the grip of the global financial crisis – because of outflows from Saudi stocks.
One losing stock on Sunday was Saudi Cement, which fell 1.8 percent after it proposed a dividend of 2.5 riyals per share for the second half of 2014, down from 3.5 riyals a year earlier.
UAE, EGYPT
Dubai’s index edged up 0.2 percent and property developer DAMAC was one of the top gainers, surging 5.8 percent.
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 percent surge in 2014 profit last week and DAMAC, which plans to delist from London, was due to review its own results and dividends later on Sunday.
Abu Dhabi’s bourse edged up 0.3 percent as National Bank of Abu Dhabi and Abu Dhabi Commercial Bank rose 1.8 and 2.1 percent respectively. Food and beverage firm Agthia Group gained 2.5 percent after it reported a 22 percent increase in 2014 profit.
Qatar’s benchmark climbed 0.8 percent, with property firms Ezdan Holding and Barwa Real Estate, up 3.0 and 4.3 percent respectively, as the main supports.
Egypt’s market slipped 0.1 percent as property companies pulled back further after gaining strongly in the last few weeks. Developer Talaat Moustafa Group dropped 2.4 percent, trimming its gains this year to 15.8 percent. It is still well ahead of the benchmark, which has gained 11.6 percent.
Meanwhile, investment firm Pioneers Holding rose 1.8 percent after it submitted a fresh bid for Arab Dairy Products at 64.30 pounds per share, topping an offer by Lactalis.
SUNDAY’S HIGHLIGHTS
SAUDI ARABIA
* The index rose 1.8 percent to 9,345 points. 
DUBAI
* The index edged up 0.2 percent to 3,893 points.
ABU DHABI
* The index rose 0.3 percent to 4,622 points.
QATAR
* The index added 0.8 percent to 12,624 points.
EGYPT
* The index slipped 0.1 percent to 9,958 points.
KUWAIT
* The index climbed 0.8 percent to 6,755 points.
OMAN
* The index edged up 0.6 percent to 6,725 points.
BAHRAIN
* The index edged up 0.2 percent to 1,438 points.

Source: Reuters