As oil prices stabilized above the level of 82 U.S. dollars per barrel, Gulf Arab markets advanced further Sunday, albeit modestly.
The Dubai Financial Market (DFM) started positively into the second week of October, up 1.57 percent at 1,749.63 points. Emaar Properties surged 3.13 percent to end at 3.95 dirhams (1.08 U.S. dollar), approaching a key resistance level at four dirhams.
Construction giant Arabtec surged 5.5 percent to close at 2.29 dirhams. Arabtec will start to build a 403-meter tower, called Okhta Center, in the northwestern Russian city of St. Petersburg. The project has a value of 10 billion dirhams. Traded value surged 98 percent to 619.23 million dirhams at the DFM.
In Doha, the QE Index added only 0.04 percent and closed at 7, 768 points. Banks outperformed the market, as Commercial Bank of Qatar (CBQ) added 0.34 percent to finish at 89.5 Qatari riyals (24. 6 dollars). Mohamad Hawa, an analyst at Credit Suisse, expected CBQ to report a 2.4 percent rise in the third quarter net income on a quarter-on-quarter basis.
According to an International Monetary Fund (IMF) study, Qatar has had the lowest level of non-performing loans (NPLs) in the Gulf region in 2009. NPLs in Qatar’s banks stood at 1.7 percent last year compared to 9.7 percent in Kuwait, 4.6 percent in the United Arab Emirates (UAE), 3.9 percent in Bahrain, 3.3 percent in Saudi Arabia, and 2.8 percent in Oman, the study showed.
The Saudi stock exchange Tadawul ended 0.45 percent higher at 6, 420.48 points. Petrochemical giant Sabic gained 2.22 percent, closing at 92 Saudi riyals.
The Kuwaiti market KSE closed above the 7,000 points level, up 0.26 percent at 7,013.2 points. Kuwait International Bank gained 3. 44 percent to finish at 0.3 Kuwaiti dinar, a new 2010 high.
In the UAE capital of Abu Dhabi, the ADX General Index ended up 0.7 percent at 2,704.1 points as real estate shares were the main gainers.