Most stock markets in the Gulf made small gains on Thursday, but trading volumes were thin because of uncertainty over the result of Britain's vote on whether to stay in the European Union. In Saudi Arabia, the main stock index closed up 0.3 percent with much activity focusing on insurance stocks. The sector's sub-index added 0.6 percent while the telecommunications sector rose 0.4 percent.
Arabian Pipes jumped 10 percent, its daily limit, for a third straight day. On Monday the company announced it had been awarded a contract worth 383 million riyals ($102.1 million) from Saudi Aramco, the state oil company, to supply it with welded steel pipes. The company said the financial impact would be reflected at the start of 2017. Under Saudi Arabia's economic reform plan, announced this month, the government and particularly Aramco intend to boost procurement of locally made goods.
Another strong gainer was property developer Dar Al Arkan. It surged 7.7 percent and is now up 15.6 percent since announcing at the beginning of June that it was discussing a partnership to build homes with the Ministry of Housing, another facet of the economic reform plan. In Egypt, Telecom Egypt (TE) added 0.2 percent after a telecommunications industry source told Reuters that new 4G licenses and other reforms issued by the sector's regulators, announced earlier this week, would not require TE to sell its 45 percent stake in Vodafone Egypt. But the company said it would eventually sell the stake when it got a good offer. A note by Naeem Brokerage said this was good news for TE.
"Floating of the stake through a secondary offering could also be an option that might be explored, parallel to an outright sale - a stake which could be valued at more than 15 billion Egyptian pounds ($1.7 billion), based on our calculations." Qalaa Holdings jumped 2.8 percent despite announcing in a bourse statement that Emirates International Investment Co, a 7.62 percent shareholder in Qalaa, was suing Citadel Capital Partners over a "financial conflict". Citadel Capital owns 24.4 percent of Qalaa.
Egypt's main index rebounded 1.4 percent to 7,253 points. "The market was in downtrend this week and was not able to capitalise on some opportunities from international stock markets prior to Britain's referendum today," said Ibrahim Nimr, head of technical analysis at Cairo's Naeem Brokerage. But he called the bounce a "bear market rally" that would not reverse the downtrend.
In Abu Dhabi, the index edged up 0.04 percent. Union National Bank continued outperforming and rose 0.7 percent. It has risen 9.9 percent in three days after Arqaam Capital said that following a proposed merger between National Bank of Abu Dhabi and First Gulf Bank, "we expect UNB to be next" to be involved in a merger. Dana Gas rose 1.8 percent. The company held a board of directors meeting on Wednesday, saying it was content with "the resumption of regular payments by the Kurdistan Regional Government for the products sold and delivered in Kurdistan". It also said it was having more success in obtaining payments from Egypt.
Kuwait's Agility said on Thursday it was in preliminary talks about potentially investing in construction firm Kharafi National, owned by the prominent Kuwaiti al Kharafi family. Agility ended flat but some Kharafi-linked shares gained with National Industries Group advancing 1.7 percent and telecommunication company Zain rising 1.5 percent. Kuwait's main index slipped 0.02 percent.
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