AIRLINK 212.82 Increased By ▲ 3.27 (1.56%)
BOP 10.25 Decreased By ▼ -0.21 (-2.01%)
CNERGY 7.00 Decreased By ▼ -0.35 (-4.76%)
FCCL 33.47 Decreased By ▼ -0.92 (-2.68%)
FFL 17.64 Decreased By ▼ -0.41 (-2.27%)
FLYNG 21.82 Decreased By ▼ -1.10 (-4.8%)
HUBC 129.11 Decreased By ▼ -3.38 (-2.55%)
HUMNL 13.86 Decreased By ▼ -0.28 (-1.98%)
KEL 4.86 Decreased By ▼ -0.17 (-3.38%)
KOSM 6.93 Decreased By ▼ -0.14 (-1.98%)
MLCF 43.63 Decreased By ▼ -1.57 (-3.47%)
OGDC 212.95 Decreased By ▼ -5.43 (-2.49%)
PACE 7.22 Decreased By ▼ -0.36 (-4.75%)
PAEL 41.17 Decreased By ▼ -0.53 (-1.27%)
PIAHCLA 16.83 Decreased By ▼ -0.47 (-2.72%)
PIBTL 8.63 Increased By ▲ 0.08 (0.94%)
POWERPS 12.50 No Change ▼ 0.00 (0%)
PPL 183.03 Decreased By ▼ -6.00 (-3.17%)
PRL 39.63 Decreased By ▼ -2.70 (-6.38%)
PTC 24.73 Decreased By ▼ -0.44 (-1.75%)
SEARL 98.01 Decreased By ▼ -5.95 (-5.72%)
SILK 1.01 Decreased By ▼ -0.02 (-1.94%)
SSGC 41.73 Increased By ▲ 2.49 (6.35%)
SYM 18.86 Decreased By ▼ -0.30 (-1.57%)
TELE 9.00 Decreased By ▼ -0.24 (-2.6%)
TPLP 12.40 Decreased By ▼ -0.70 (-5.34%)
TRG 65.68 Decreased By ▼ -3.50 (-5.06%)
WAVESAPP 10.98 Increased By ▲ 0.26 (2.43%)
WTL 1.79 Increased By ▲ 0.08 (4.68%)
YOUW 4.03 Decreased By ▼ -0.11 (-2.66%)
BR100 11,866 Decreased By -213.1 (-1.76%)
BR30 35,697 Decreased By -905.3 (-2.47%)
KSE100 114,148 Decreased By -1904.2 (-1.64%)
KSE30 35,952 Decreased By -625.5 (-1.71%)

Gulf stock markets rose on Thursday amid hopes for a global deal to prop up oil prices, as investors largely ignored sharp downgrades of the credit ratings of three nations in the region. Late on Wednesday, Standard & Poor's cut Saudi Arabia by two notches to A- from A+, while Bahrain lost its investment grade status; Oman was lowered to the last rating above junk status.
The downgrades underlined the damage to state finances in the region from cheap oil, and the likelihood that governments will have to pay more in future to fund themselves. After the markets closed, the Bahrain government cancelled a $750 million bond sale in response to S&P's decision. But local retail investors focused on Wednesday's more than 7 percent jump in oil prices after Iran endorsed the idea of producers capping their output - although Tehran did not commit itself to any action, and many analysts doubt that oil prices have room to rise much further.
The Saudi stock index gained 1.4 percent in heavy trade for its fourth straight day of gains as the biggest petrochemical maker, Saudi Basic Industries, climbed 2.6 percent. Jabal Omar Development rose 3.0 percent after saying it had signed an agreement with the Ministry of Finance to defer payments on a 3 billion riyal ($800 million) loan; it had missed a first payment on the loan in January.
Many Saudi construction firms are struggling because of a slowdown in government spending and the high costs of labour market reforms; Jabal's agreement suggested the government was willing to support them to some extent. National Metal Manufacturing surged its 10 percent daily limit after saying its 2015 net profit jumped 41 percent. S&P's downgrade of Saudi Arabia is expected to trigger downgrades of some Saudi banks in coming days as the country ceiling is lowered, but Saudi banks rely little on overseas debt, so the impact on them will be tiny. The banking sector index rose 1.4 percent.
Dubai's index gained 1.2 percent as trading volume doubled from the previous day. Real estate stocks were active with Emaar Properties up 1.6 percent and Union Properties up 3.7 percent. GFH Financial gained 3.2 percent. It had risen 1.4 percent on Wednesday after Abu Dhabi Financial Group's capital markets arm, Integrated Capital, said it had increased its stake in GFH to 10 percent. Previously its stake was 7.4 percent, according to bourse data.
Abu Dhabi's index rose 1.6 percent as First Gulf Bank surged 2.9 percent and Aldar Properties climbed 4.2 percent. Qatar rose 1.6 percent as property firm United Development surged 4.0 percent. Drilling rig provider Gulf International Services, the most heavily traded stock, initially rose but closed 0.8 percent lower.
Egypt's index edged down 0.1 percent, failing to benefit from a firm tone for global bourses, as concern about a possible currency devaluation persisted. The central bank shut four exchange companies on Wednesday in an effort to end speculation against the currency, but some investors see a devaluation as inevitable given Egypt's foreign exchange shortage. Yields on six-month and one-year Treasury bills rose at an auction on Thursday. Real estate firm Palm Hills Development closed unchanged, after initially rising as much as 3.0 percent after it signed a co-development agreement for a large resort project at Ras El Hekma, on the north coast.

Copyright Reuters, 2016

Comments

Comments are closed.