Oil aids most Gulf bourses

Shares in most Gulf bourses were firm Tuesday as oil prices held near this year’s highs.

Saudi petrochemical shares were strong with the sub-index rising 1.3 percent, its fifth straight session of gains. The main stock index rose 0.6 percent.

Etihad Etisalat (Mobily) jumped 4.6 percent after it said lenders who had not already agreed in December to waive breaches in loan terms had now done so.

Najran Cement climbed 2.1 percent after it announced its board had approved the creation of a new mining company, although it still needs approval from authorities. It did not give details, but developing the mining industry is a major plank of Saudi Arabia’s economic reform plan.

DUBAI, QATAR

In Dubai the index added 0.4 percent with help from blue chip Emaar Properties, which climbed 2.3 percent.

Arabtec closed flat at 1.45 dirhams; it gained as much as 2.8 percent during the day after it said its June 1 general assembly would aim to approve a plan to use “all the statutory reserve to extinguish part of the company’s losses”. It gave no details.

The company has reported losses in the past six quarters, which it blamed on increased costs and tough market conditions. In the last few days analysts at Deutsche Bank cut their price target for Arabtec to 1.11 dirhams from 1.14 dirhams while maintaining a “hold” rating, and EFG Hermes raised its target to 1.13 dirhams from 1.07 dirhams while keeping a “sell” rating.

Neighbouring Abu Dhabi fell 0.5 percent, weighed down by a sell-off in heavyweight banking shares. Abu Dhabi Commercial Bank lost 1.7 percent and Union National Bank declined 1.5 percent.

Vodafone Qatar dropped 3.6 percent after it reported a net loss of 180 million riyals ($50 million) in the latest quarter, versus a loss of 66 million riyals a year earlier.

But Doha’s main index edged up 0.1 percent with oil rig provider Gulf International Services climbing 2.5 percent.

TUESDAY’S HIGHLIGHTS

SAUDI ARABIA

* The index rose 0.6 percent to 6,740 points.

DUBAI

* The index added 0.4 percent to 3,302 points.

ABU DHABI

* The index dropped 0.5 percent to 4,325 points.

QATAR

* The index edged up 0.1 percent to 10,011 points.

KUWAIT

* The index added 0.4 percent to 5,367 points.

OMAN

* The index fell 0.2 percent to 5,959 points.

BAHRAIN

* The index was flat at 1,108 points.

Source: Reuters