DUBAI: Kuwait’s stock index posted the biggest decline in the Gulf Arab region yesterday as concerns over the outlook of heavyweight Zain clouded investor sentiment.
Dubai lead gains closing above the psychologically important 2,200-point level and reaching a two-week high.
Dubai heavyweight Emaar Properties and telecom firm du were the main drivers, each gaining around 3 percent to help lift the index by 1.7 percent to 2,205 points, its highest close since October 28.
Kuwait’s Zain fell 3.8 percent, partly because of lingering doubts about a takeover deal announced in September and a possible decline in revenue.
“It looks like there is a down trend in the market and the main concern is Zain,” said Talal al-Loghani, vice-president for Gulf equity markets at Kuwait Finance and Investment Co.
Agility the biggest logistics firm in the Gulf, also weighed on sentiment in Kuwait. The stock fell 3.3 percent, after posting a 15-percent rise in third-quarter net profit.
“The results are neutral at best, they will need a strong fourth-quarter to match consensus for the whole year,” said Ali Khan, managing director and head of brokerage at Arqaam Capital.
In Egypt, Pioneers Holding extended its gains on an impending merger deal with Beltone Financial. It jumped 5.1 percent while the main stock index edged down 0.03 percent as traders awaited direction from US markets.
“Investors are just waiting to see what happens in the United States. We have become followers blindly of US markets,” said Ashraf Akhnoukh of CIBC brokerage.
Stocks in Saudi Arabia and Oman edged higher, while Qatar and Bahrain fell.
YESTERDAY’S HIGHLIGHTS
DUBAI
* The index rose 1.7 percent to 2,205 points.
ABU DHABI
* The measure decreased 0.1 percent to 2,967 points
QATAR
* The benchmark fell 1 percent to 6,987 points.
SAUDI ARABIA
* The benchmark gained 0.2 percent to 6,254 points.
KUWAIT
* The index fell 2 percent to 7,109 points.
OMAN
* The index advanced 0.4 percent to 6,313 points.
BAHRAIN
* The measure declined 0.2 percent to 1,485 points.
