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Gulf stocks rebound across-the-board

Xinhua, August 25, 2015 Adjust font size:

Following a rebound in oil prices, along with bargain hunters entering the scene in a few markets in Asia and Europe, all stock indexes in the Gulf, with the exception of Bahrain, recovered territory Tuesday.

After hitting a six-year low on "Black Monday," the price of oil (U.S. crude oil) rose 3.56 percent approximating 39.60 dollars per barrel (159 liters) in late Tuesday trading.

This triggered a rebound in stock markets in the Gulf Cooperation Council (GCC) albeit the rout in China continued Tuesday where the Shanghai-based CSI 300 Index lost another 7.10 percent.

In the countries of the GCC, Saudi Arabian Tadawul All-Share Index recorded the most sizeable rebound, finishing Turnaround Tuesday" 7.38 percent higher at 7,543.05 on heavy trading.

Market bellwether Sabic (Saudi Basic Industries Corporation), the world's largest producer of petrochemical products, surged up 9.69 percent.

Unlike other Gulf exchanges which shut down in the early afternoon, the Saudi stock exchange closes later in the day at 5 pm local Riyadh time.

Therefore, Saudi investors benefited from news from the Chinese central bank that interest rates for one-year lending and deposits in the world's second economy will be cut, starting Wednesday, by 25 basis points to 4.6 percent and 1.75 percent respectively.

From September 6 onward, the reserve requirement ratio for lenders in China will also be lowered by 50 basis points in order to provide new liquidity motivation to markets.

In Manama, the Bahrain All-Share Index failed to keep up with the upwards trend in the GCC and closed 0.04 percent lower at 1,303.97.

The Dubai financial market (DFM) general index posted the second largest regional gain, ending up 4.61 percent at 3,558.37.

Investors preferred buying mid-cap shares such as real estate financing firm Amlak (ending up 14.69 percent), while blue chips like developer Emaar Properties (3.43 percent higher) underperformed.

The gauge at Dubai's international market, the FTSE NASDAQ Dubai UAE 20 Index surged up 4.81 percent reaching 3,413.47 points.

DP World, the world's third container port operators, jumped up to 7.47 percent. The company will announce its financial results for the first six months of 2015 Thursday, August 27.

Trading action in Abu Dhabi was humble as the ADX general index edged up by 1.63 percent reaching 4,334.17.

ADX-listed Dana Gas was the top beneficiary, finishing 13.64 percent higher. Endit