UAE, Saudi stocks inch up in timid trade; Qatar drops before FTSE changes

Most stock markets in the Gulf were slightly higher on Tuesday’s early trade with the main focus on stocks favoured by local day-traders, while Qatar’s bourse dropped ahead of changes by index compiler FTSE.

Dubai’s index grew 0.6 percent as loss-making theme park operator DXB Entertainments climbed 2.3 percent, pulling further away from a two-year low hit on Sunday.

Investors were still reacting positively to news that its chief executive Raed Kajoor al-Nuaimi had been appointed CEO of a new entity that will manage development projects for Dubai Holding and Meraas Holding. The company has not yet named a new CEO.

Most other Dubai stocks also gained, with Dubai Mall operator Emaar Malls up 0.8 percent.

In Abu Dhabi, the index was up 0.7 percent as 12 shares rose and only one declined. Most of the top gainers were mid-sized stocks; National Bank of Ras Al Khaima jumped 9.3 percent,

Qatar’s index lost 0.5 percent with 14 shares declining and only one rising. FTSE will announce the results of its June review on Wednesday, with changes to its indexes effective after the close on June 16, investment bank VTB Capital said in a report.

VTB calculated that based on preliminary index weighting changes revealed last week, Qatari Investors Group (QIG) would see $6 million of fund outflows due to the changes and Ooredoo would see a $22 million outflow. QIG shares dropped 2.3 percent and Ooredoo slipped 0.9 percent.

The Saudi index was up 0.5 percent after 45 minutes with real estate-related shares again attracting attention. Al Jazira Mawten REIT was the top gainer, jumping 3.5 percent, and Al Andalus Property rose 1.6 percent.

Banque Saudi Fransi was up 1.5 percent after its investment arm, Fransi Capital, said its Taleem real estate investment fund, which will be the market’s fourth such fund, was heavily oversubscribed.

Source: Reuters