Qatar stocks pull back ahead of FTSE inclusion, UAE outperforms peers

Stock markets in the Gulf diverged in early trade Monday, with Qatar’s index pulling back ahead of the inclusion of some companies in FTSE’s secondary emerging market index, while Dubai advanced as global risk sentiment improved.

Qatar’s index retreated 1.8 percent, wiping out Sunday’s 0.4 percent gain. Nine-tenth of the shared that were trading declined.

Shares in companies set to be included in index compiler FTSE’s secondary emerging market index on Sept. 20 were the top losers, with mobile phone operator Ooredoo dropping 3.8 percent and Qatar National Bank shedding 1.9 percent.

Saudi Arabia’s index slipped 0.1 percent after an hour of trade, with 74 shares declining and 49 gaining. Saudi Telecom Co (STC) lost 1.8 percent.

But petrochemical shares outperformed as Brent futures bounced back over $46 a barrel. Saudi Basic Industries , the largest producer, added 0.6 percent.

Meanwhile Dubai’s index rose 0.4 percent, with gainers outnumbering losers 16-to-3.

Dubai’s largest listed developer Emaar Properties added 0.9 percent, while the amusement park builder Dubai Parks and Resorts rose 1.2 percent ahead of the opening of its theme parks next month.

Global stocks drew support from expectations that the U.S. Federal Reserve would skip a chance to raise rates this week.

Blue chips supported Abu Dhabi’s index up 0.6 percent with Aldar Properties adding 1.1 percent and Dana Gas jumping 3.5 percent.

Source: Reuters