Dubai markets rise on DIB rights issue, other Gulf stocks edge highe

Dubai markets rose in early trade on Thursday, carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB), and most other Gulf stocks inched up.

The Dubai index was up 1.4 percent as Dubai Islamic Bank jumped 4.6 percent to 5.01 dirhams in heavy trade.

Wednesday was last day of trade in the bank’s rights issue, which allowed purchase of DIB shares at 3.11 dirhams. Investors had been selling the stock to buy the rights before the deadline, contributing to its 13 percent decline this year.

The Abu Dhabi index also rose 0.9 percent.

Saudi Arabia’s Tadawul index edged up 0.5 percent, pulled up by a 1.6 percent rise in shares of Saudi Basic Industries Corporation (SABIC), the largest company on the bourse.

The petrochemical firm rose 2.2 percent on the back of a minor rebound in the oil price and enthusiasm related to the Tadawul’s upcoming inclusion in the MSCI emerging markets index.

Financial blue-chips National Commercial Bank, Samba and Banque Saudi Fransi were also among the market’s biggest gainers.

Qatari stocks climbed 0.5 percent, weighed down by Qatar National Bank (QNB) and Qatar Islamic Bank , while other Gulf markets were mixed.

The Qatar index was trading 1.8 percent lower as blue-chip stock Qatar National Bank fell 3.5 percent, giving up some of the recent gains driven by a 7 percent rise in first-quarter net profit, helped by rapid loan growth.

Elsewhere markets were mixed with Qatar index trading 0.5 percent higher, Bahrain’s BB All Share up 0.1 percent and Oman down 0.4 percent.

Shares in several Qatar blue chips have risen since May 15 after MSCI said it would raise their weightings in its index at the end of this month, after the companies increase their foreign ownership ceilings.

Source: Reuters