Dubai: Emirates NBD shares continued their gaining streak even as the wider Dubai index saw sustained selling pressure, while Saudi Arabia’s Tadawul All Share Index outperformed regional peers.
“People are seeing positive news coming out of Saudi [Arabia], and that is why they are betting on the stock market,” said Mohammad Shabbir, head of funds and portfolios at the Saudi Kuwaiti Finance House (SKFH).“[The] Saudi economic outlook is improving and we may see an inclusion in the FTSE index. Also, oil prices are holding up well.”
The Dubai Financial Market (DFM) General Index closed 0.70 per cent lower at 3,165.51, having been on a downward trend from the 3,500 level seen around November 2017.
“There are no drivers for outperformance in the UAE,” Shabbir added. “The key difference is that Saudi Arabia has a lot of resident investors, and the UAE is more dependent on foreign flows which are wary of Dubai and Abu Dhabi markets.”
Emirates NBD closed 4.5 per cent higher to end at Dh10.45. Other stocks witnessed selling.
Emaar Properties closed at Dh5.89, down 2.81 per cent, while Dubai Islamic Bank (DIB) shed 0.72 per cent to close at Dh5.49. Emaar Development closed more than 2 per cent lower to end at Dh5.09 while Arabtec and Gulf Finance House (GFH) ended the session flat, at Dh2.30 and Dh1.44 respectively.
The Abu Dhabi Securities Exchange (ADX) General Index ended the day almost flat at 4,534.17 on Monday.
Bank of Sharjah gained 6.25 per cent to close at Dh1.19 while Aldar Properties fell 1.84 per cent to close at Dh2.13.
Saudi Arabia’s Tadawul index rose 1.1 per cent to end at 7,780.83, supported by materials and transportation indices, which gained more than 1 per cent. The energy index closed 0.43 per cent higher.
Dar Al Arkan closed 4.19 per cent higher to 10.44 riyals, while Saudi Basic Industries ended the session at 110.80 riyals, up 2.33 per cent.
Elsewhere in the Gulf region, the Muscat MSM 30 Index shed 0.62 per cent to close at 4,875.42, while the Bahrain All Share Index eased 1 per cent lower to end at 1,353.28.
The Qatar Exchange index closed 4 per cent higher at 8,663.04 but Kuwait’s index slipped 0.55 per cent to close at 6,725.64.