Doha: Qatar Exchange ended in the green yesterday adding 28.37 points or 0.19 percent to 9,751.89 points from the previous closing of 9,723.52. Among the top gainers were Industries Qatar which was up 0.59 percent to QR 153, United Development Company gained 1 percent to QR22.32, Islamic Insurance gained 1.05 percent to QR57.80 and Ooredoo was up by 2.54 percent to QR141.50.
Saudi Arabia’s petrochemical shares led a bourse rally as earnings boosted sentiment, while most regional markets also rose as they resumed trading after a week-long holiday and reacted positively to the US averting a debt default.
Shares in Saudi Kayan Petrochemical surged 9.6 percent to a nine-month high after it swung to a third-quarter profit. The company made a profit of SR43.3m ($11.55m), compared to a net loss of SR178.4m in the same period last year, according to a bourse statement.
Parent firm Saudi Basic Industries Corp jumped 5.4 percent, helping lift the sector’s index by 5 percent to a 17-month high.
“So far the petrochemical results have been better than expected — the biggest surprise is Kayan, which reported its first ever profit after eight quarters of operations,” said Iyad Ghulam, petrochemical analyst at NCB Capital. “It’s mainly from efficiencies — they’ve managed to reduce cost of operations.”
The Saudi index rose 1.9 percent to a two-month high, breaking out of a sideways trend. Shares in Al Rajhi Bank dropped 1.9 percent after it reported that its third-quarter net profit fell 8.1 percent year-on-year.
In Dubai, the measure rose 2.8 percent to its highest level since November 2008 on renewed buying by retail investors supported by a positive global backdrop.
Global stock markets climbed to five-year highs on Friday as investors bet the US Federal Reserve would extend its stimulus policy well into 2014, while accelerated growth in China’s economy also lifted equity and commodity markets. A last-minute deal by US lawmakers last week to avert a debt default has also improved the mood.
“We were closed for the week during which the US resolved its debt ceiling issue, at least temporarily, and the government reopened. We’re playing catch-up to the spike in major markets,” said Sanyalaksna Manibhandu, senior analyst at NBAD Securities.
Expectations of Dubai winning the bid to host the World Expo 2020 are also supporting local sentiment. A win would spur faster infrastructure development and some optimism has already been priced into equity and property markets. The winner is expected to be announced on November 27.
Abu Dhabi’s benchmark slipped 0.3 percent after hitting an intraday two-month high as some booked profits. The market is up 45.6 percent in 2013. Elsewhere, Kuwait’s index rose 1.8 percent and Oman added 0.5 percent.
In Egypt, the benchmark index advanced 1 percent to a 33-month high. It is also now above the key psychological level of 6,000 points.
Shares in Orascom Telecom Media and Technology Holding and Arabia Investments Development jumped 3.2 and 6.7 percent respectively.
SAUDI ARABIA: The index climbed 1.9 percent to 8,133 points.
DUBAI: The index rose 2.8 percent to 2,910 points.
ABU DHABI: The index slipped 0.3 percent to 3,830 points.
EGYPT: The index rose 1.0 percent to 6,049 points.
OMAN: The index gained 0.5 percent to 6,705 points.
KUWAIT: The index advanced 1.8 percent to 7,906 points.
BAHRAIN: The index climbed 0.8 percent to 1,204 points.