Gulf stocks firm in early trade; Saudi’s L’azurde climbs on listing

By Yomna Yasser On Jun 29, 2016

Major stock markets in the Arab Gulf firmed in early trade on Wednesday, backed by recoveries in oil and global equity prices after the shock of Britain’s vote to leave the European Union last week.

Riyadh’s index added 0.7 percent in the first 45 minutes of trade, buoyed by the petrochemcial sector as oil prices rose back towards $50 a barrel. Brent futures were up 1.0 percent in Asian trade.

Shares in retailer L’azurde Company for Jewellery surged their 10 percent daily limit to 40.70 riyals as they listed in Riyadh. The company sold 12.9 million shares in its initial public offer at 37.0 riyals per share.

Main competitor Fitaihi Holding rose 0.6 percent. L’azurde is the first retail company to list in Saudi Arabia this year, and its stock price performance in coming months may depend on the outlook for discretionary spending in the midst of an economic slowdown due to low oil prices.

Dubai’s stock index rose 0.2 percent with the main support from Emaar Properties, up 0.2 percent, and Arabtec, which was 1.5 percent higher.

But Dubai Parks and Resorts, the most heavily traded stock, dropped 1.9 percent after the amusement park developer said on Tuesday it had made an exception to its exclusive right to develop and operate Six Flags-branded theme parks in the Gulf Cooperation Council, in order to let Six Flags help Saudi Arabia build theme parks

Abu Dhabi’s index edged up 0.4 percent with Abu Dhabi National Energy (TAQA), the top gainer, rising 4.1 percent. Abu Dhabi said on Wednesday it would merge state investment funds Mubadala Development Co and International Petroleum Investment Co to improve their financial performance; this could signal more action to restructure Abu Dhabi’s state assets, such as loss-making TAQA.

In Qatar, stocks that are members of the MSCI emerging market index were the main drag on the benchmark, which was down 0.5 percent. Islamic lender Masraf Al Rayan fell 0.9 percent and Qatar National Bank lost 0.7 percent.

Source: Reuters