Most Gulf stock markets rose in early Sunday trading, mirroring gains late last week in global markets, and supported by some companies' positive second-quarter results. In Saudi Arabia, the Tadawul main index was up 0.6%, with banks leading the gains. Dubai's Arqaam Capital said in a research note last week it expected Saudi Arabia to deliver the strongest second-quarter earnings performance in the Gulf. "We, however, expect growth to peter out as (the) rate cut cycle kicks in, given the significant positive ALM (asset liability management) position of KSA (Saudi) banks," it said.
Alinma Bank was up 1.6% in the first hour of trading, while Al Rajhi Banking and Investment Corp was up 1.3%. Mobile Telecommunications Company Saudi Arabia (Zain Saudi) gained 0.5% after reporting an 11% increase in second-quarter revenues to 2.06 billion riyals ($549.26 million). The Dubai index was up 0.5%, lifted by property developers Union Properties, up 1.8%, and heavyweight Emaar Properties, up 0.4%.
In Abu Dhabi, where the index was up 0.2%, blue chip Aldar Properties gained 2.4%. The company said last week it had partnered with the Abu Dhabi government to deliver projects worth 5 billion dirhams ($1.36 billion). Abu Dhabi-based Waha Capital was the top gainer, up 4.2%. Waha, which has seen its stocks tumble more than 50% since the beginning of the year, has been in talks with another investment firm, Gulf Capital, regarding a merger, sources told Reuters earlier this year. Recent changes at management level might suggest the company is charting a new growth strategy. In Egypt, the index was little changed, while Qatar's index shed 0.2%.
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