Gulf stocks mixed after MSCI adjusts indexes; profit-taking in Saudi banks, petchems

Gulf stock markets were mixed at early Tuesday after MSCI adjusted its indexes, causing sharp moves in some shares.

Dubai’s main index was up 0.1 percent as DXB Entertainments added 3.4 percent after MSCI upgraded the stock to its United Arab Emirates standard index, effective at the close on Nov. 30.

Builder Arabtec fell 3.1 percent after MSCI downgraded it to its small cap index, while Dubai Financial Market lost 0.9 percent after it was deleted from the standard index.

Abu Dhabi’s main index climbed 0.5 percent to 4,205 points, rebounding from technical support at its May low of 4,175 points. Eshraq Properties rose 2.9 percent.

Qatar’s index dropped 0.4 percent as Vodafone Qatar slid 1.7 percent to 9.99 riyals after MSCI downgraded the stock to its small cap index. The stock tested but held technical support at its January low of 9.70 riyals.

Qatar First Bank soared its 10 percent daily limit in heavy trade after MSCI added it to its small cap index.

Saudi Arabia’s stock index fell 0.4 percent, pulled down by profit-taking in banks and petrochemicals after a strong rally in the last four weeks.

Riyad REIT, which jumped its 10 percent daily limit when it listed on Sunday and did so again on Monday, climbed a further 3.7 percent, but heavy trading volume showed some investors had begun to sell.

Source: Reuters