Most stock markets in the Gulf nudged up on Wednesday, supported by recoveries in oil and global equity prices after the shock of Britain’s vote to leave the European Union last week, but turnover was small before summer and Eid Al-Fitr holidays.

Saudi Arabia’s Tadawul All-Share Index added 0.3 percent, buoyed by the banking and telecommunications sectors, with phone operator Zain KSA climbing 1.3 percent to SR7.95.
NCB Capital said in a note that strong revenue growth, improving market share and margin expansion were Zain KSA’s main strengths.
“The company is also expected to benefit from the reduction in interconnection charges, while capital expenditure is expected to continue with the support of the recent 2.25 billion riyal ($600 million) loan renewal,” the note added. NCB is neutral on Zain shares with a price target of 9.0 riyals.
Shares in retailer L’azurde Company for Jewellery closed 7.6 percent higher at SR39.80 as they listed, but came off their intra-day high of SR40.70. It is unusual for a Saudi stock not to end up its 10 percent daily limit on its first day of trade. The company sold 12.9 million shares in its initial public offer at 37.0 riyals per share.
Main competitor Fitaihi Holding dropped 3.0 percent. L’azurde is the first retail company to list in Saudi Arabia this year, and its stock price performance in coming months may depend on the outlook for discretionary spending in the midst of an economic slowdown due to low oil prices.
Dubai’s index fell 0.4 percent, sagging in the final hour of trade as investors booked profits in small and mid-cap stocks ahead of the holidays. Islamic insurer Dar Al-Takaful slumped 10.0 percent.
The most heavily traded stock, amusement park builder Dubai Parks and Resorts, dropped 3.2 percent. The company said that at the behest of Dubai’s ruler, it had made an exception to its exclusive right to develop and operate Six Flags-branded theme parks in the Gulf Cooperation Council, in order to let Six Flags help Saudi Arabia build theme parks.
Abu Dhabi’s index edged up 0.2 percent. National Bank of Abu Dhabi, which is in talks to merge with fellow lender First Gulf Bank, added 1.2 percent. Abu Dhabi Commercial Bank also gained 1.2 percent. Some analysts believe ADCB could merge with Union National Bank.
I n Cairo, the main index added 0.2 percent. El Sewedy Electric, the top gainer, jumped 4.7 percent.
But financial firms, favored by international funds, lagged. Commercial International Bank lost 1.2 percent and investment bank EFG Hermes dropped 1.1 percent.
Doha’s index nudged up 0.1 percent in the final hour of trade as investors bought shares with attractive dividend yields ahead of second-quarter corporate results. Doha Bank gained 1.6 percent; the lender has a 12-month forward dividend yield of 7.7 percent, according to Reuters data.

Source: Arab News