GULF STOCKS RISE

Dubai

Most Gulf bourses edged up yesterday on mostly positive domestic news, shrugging off weaker oil prices, while Egypt fell after a string of announcements that dampened investor sentiment.

The main Saudi stock index rose 0.7 per cent and food maker Savola Group was one of the main supports, surging 4.0pc.

Savola has joined with Singapore’s Temasek Holdings to bid for Kuwait Food Co (Americana), Bloomberg reported on Sunday, quoting unnamed sources.

Other Saudi sectors were also positive, continuing an advance which began on Sunday after the finance ministry said the government would continue borrowing if necessary to fund important development projects.

Citing China’s economic slowdown, Saudi Arabia’s Albilad Capital on Sunday cut valuations for companies in the Saudi petrochemical sector.  

It said the price of ammonia in the Middle East had dropped 28.8pc year-to-date, while mono ethylene glycol had dropped 21.3pc, according to quotes from southeast Asia.

Elsewhere in the Gulf, Dubai investors bid up property stocks, hoping that companies would announce positive news at an annual industry exhibition.

The emirate’s index rose 0.5pc with developer DAMAC, the most traded stock, jumping 2.0pc and the runner-up, builder Arabtec, surging 3.8pc.

Abu Dhabi slipped 0.5pc, although local developer Aldar Properties rose 1.3pc.

Qatar’s bourse added 0.4pc, largely because of Qatar National Bank which rose 1.3pc.

Egypt’s main index edged up in early trade but then turned negative in a broad sell-off after a series of negative news announcements.

The country’s central bank said on Monday that its foreign currency reserves had fallen to $18.1 billion from $18.5bn.

Meanwhile, the investment minister said the government had signed an agreement with a Chinese company on building and financing part of a planned new administrative capital east of Cairo.

Kuwait index rose 0.8pc to 5,710 points, Oman index climbed 0.5pc to 5,772 points, while Bahrain index slipped 0.2pc to 1,294 points.