The Saudi Arabian and Egyptian stock markets continued strong uptrends on Thursday, while other bourses in the Gulf were generally quiet because of a lack of fresh catalysts and a soft global market tone. The main Saudi index rose for a ninth straight day, climbing 0.7 percent to a six-year high, buoyed by last month's announcement that the market will open early next year to direct investment by foreign institutions.
Although trading volume was moderate, there was fresh buying of stocks which foreign investors are expected to favour when they enter the market. Petrochemical giant Saudi Basic Industries gained 1.6 percent; Al Rajhi Bank rose 2.2 percent. -- Other Gulf markets quiet, trading volume shrinks
Other Gulf markets were quiet. Dubai and Abu Dhabi each edged up 0.2 percent while Qatar slipped 0.2 percent; trading volume shrank to low levels in all three markets. Dubai's Emaar Properties rebounded 1.6 percent following a two-day slide that began when it reported strong second-quarter earnings which failed to deliver a positive surprise. After the close, Dubai mortgage lender Amlak Finance , 45 percent owned by Emaar, said all its creditors had approved a plan to restructure its $2.7 billion debt, and that its shares - suspended since 2008 - were expected to resume trading early next year. The debt deal was in line with a proposal announced by Amlak in July.
In Qatar, Islamic Holding soared 9.7 percent as it topped the turnover list. Investment firm Ezdan, whose shares rose 0.5 percent, bought a stake of over 20 percent in the company in March as part of a push into Islamic investments; it was not clear if the stock's latest leap was related to this. Ahli United Bank, Bahrain's largest lender, rose 2.5 percent after posting a 35.1 percent rise in its second-quarter net profit as core operating earnings grew; the results were at the high end of analysts' estimates.
Egypt stayed bullish after the index's breakout this week above the May and June peaks, and following news of the $4 billion plan to build a new Suez Canal alongside the existing waterway. The index gained 1.2 percent in active trade. Investment firm Pioneers Holding climbed 1.9 percent, bringing its gains over the past four days to 18 percent, after it said it might buy the rest of Arab Dairy Products, in which it already holds about 25 percent. The news was a fresh sign of reviving mergers and acquisitions interest in Egypt because of expectations for an economic recovery. Shares in Arab Dairy jumped their 10 percent daily limit. Commercial International Bank, the country's biggest listed bank, rose a further 2.0 percent, bringing its gains since the end of June to 23 percent.
The largest Dairy product and juice maker, Juhayna Food Industries, tumbled 6.2 percent after posting a disappointing net profit for the second quarter, blaming rising milk prices and higher spending on selling and distribution. Net income stood at 40 million Egyptian pounds ($5.59 million), down 67 percent from the same period last year. But GB Auto rose 0.5 percent after posting a 148 percent leap in second-quarter profit, citing increased commercial vehicle sales and the expansion of its factories. "Following years of unrest, the market is ready for a breakthrough, and we expect continued strong sales," the chief executive said.
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