Bargain-hunters help drive Gulf equities higher
Tadawul recovers as bank stocks spark interest while DFM, ADX pile on gains
Dubai: Saudi Arabia’s Tadawul index recovered on Tuesday as traders resorted to buying bank stocks in the last two hours of trade, helping the index advance 1.66 per cent to close at 8,609.35. UAE indices also rose.
The Tadawul has shed more than 10 per cent since May 1, making it attractive for bargain hunters.
Al Rajhi Bank closed 2.18 per cent higher at 70.20 riyals while Saudi Basic Industries Corp gained ended 3.3 per cent to close at 112.80 riyals and Alinma Bank rose 1.86 per cent higher to end at 25.20 riyals.
The Dubai Financial Market (DFM) general index closed 1.04 per cent higher at 2,539.24, buoyed by interest in heavyweights such as Emaar Properties and Dubai Islamic Bank (DIB).
Emaar Properties was 2.9 per cent higher at Dh4.23 while DIB closed at Dh4.93, 0.82 per cent higher than the previous day’s close.
DP World rose 2.41 per cent to $17, making it the most active stock in trade. Union Properties closed 5 per cent higher at Dh0.310.
The DFM index has been on the back foot after breaching its 50-day moving average of 2,702.
“As expected, most traders opted to unwind their long positions to sit on cash. Also the sharp decline shall create further margin pressures,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said.
The Abu Dhabi Securities Exchange (ADX) general index closed 1.05 per cent higher at 4,782.48.
First Abu Dhabi Bank ended the day 1.3 per cent higher at Dh14.06 while Abu Dhabi Commercial Bank (ADCB) surged 3.53 per cent to close at Dh8.80.
Abu Dhabi Islamic Bank closed the day 1.59 per cent higher at Dh4.47 as Dana Gas rose 4.12 per cent higher to end at Dh0.91.
Elsewhere in the region, the Muscat MSM 30 index closed 0.06 per cent lower at 3,842.47 while the Qatar Exchange index fell 2 per cent to 9,700.77.
The Kuwait All Share Index closed at 5,598.7, up 0.68 per cent.