11/02/2015
"Bahrain" ignore the report, "S & P" and rise
Credit ratings overshadow the negative on Gulf markets
Gulf stock marketsrecordeda slight declineyesterday,afterthe descent ofoil prices and thereduction ofagencyStandard & Poor'screditratingsand outlookfor a number ofcountries in the region.
In theDubaimarketindex fellfrom 0.3percent to3931pointsagainafterhis inabilityto penetrate theimportanttechnicalresistancelevel of4008pointsat3960, whichhadhigh levelsrecordedin late DecemberandJanuaryHui"DamacReal Estate Development"sharethe dailymaximumof 10 percent for the secondconsecutive session,after the companyyesterdayproposed anon-cash dividenddisbursementfor2014.
Andthe price ofBrent crudedroppedmorethan 1 per centin early tradingyesterday,after the InternationalEnergy Agency saidthat the UnitedStates will remainthe largest source ofgrowth inoil supplyuntil2020.On the otherhand,has raisedconsumer price inflationinChina, whichreachedits lowest level infive yearsin January,concerns aboutdemandinthe second largesteconomy in the world,andone of the largestconsumersofpetrochemicalsproduced in theGulf.
MoreoverStandard & Poor'sagencyreducedyesterday'sfirstsovereign debtratingsof Bahrainand Oman,the twoweakestfinanciallyin the Gulf CooperationCouncil,confirmedthe agencydesignatedtoQatar and Abu Dhabi.
The general indexof the Abu Dhabilost0.4 per centwithmost of thedescent of theshares of bankslistedon it.The Shares inNational Bank of RasAl Khaimah5.1 per centandthe NationalBank of Abu Dhabi1.1per cent.
Theweakperformance of banksalsoin theAmman Stock Exchange, whichreduced the"S & P"classification,which may increase thecost of borrowingfrom abroadtolocal banks.TheAhli Bank share has dropped4.4 percentandBank MuscatOman's largestbanks1.9 per cent,whilethe stock marketindex fell0.9 per cent.
However, theGulfbond pricesbarelychangedyesterday,andincreasedreturn ondollar-denominatedbonds,Bank Muscatteamsentitlementbasispointsin 2018,comparedtoUS bondsforfive years.This indicatesthatmost investorsdid not feelvery concernedafteraction"S & P,ignoring theBahrain Stock Exchangedowngraderose0.4 per cent."Aluminium Bahrain"sharesJumpedof 1.2per centdespite the fact thatthe companyhas reducedthe dividendfor2014to0.027dinarsper share, from0.036dinarsin the previous year.The company saidyesterdaythatits net profitamounted to96.4million dinars ($ 255.7million)in2014, up from79.7million dinars in2013.
Kuwait boursefell0.2per cent to reachits indexto6735points.TheQatar Exchangeyesterdayon an officialholidayon the occasion oftoday'sathleteof the State ofQatar, and resumework today.
Egyptian Stock Exchangerose0.2 per centamida mixedperformance of localshares.Jumped"Ezz Steel"shareof 2.4 per cent,andwas oneof the biggestsupporters of theindex.Theincreasedvolume oftradingon the stocksince Sunday, whenthe company's president, Ahmed Ezzsaid heintends to runin the parliamentary elections.
Smalland medium-sizedstocks, "EijiX70"indexwent upby 0.27percent at601.24points.Whilethe broaderindexrosebroader"EGX100"by 0.10percentto reach1179.71points.And closedcapital marketat the level of533.88 billionpounds, recording an increaseof942 millionpounds ($ 123.4million).
In terms ofnationalitiesinvestorsEgyptiansVtaamlattended topurchasea netbullish9.1 millionpounds, whiletendedforeigners andArabstended towards sellingto sell mea net1.8 millionpoundsand7.3 millionpoundsrespectively.
In terms ofcategories of individualsinvestorstendto buy,versussellingmovementseized control of thetradinginstitutions.Issued shares"Alnaserfor Agricultural Crops"risesby 5.2per cent to15.16pounds, whiledeclinerscameonthe stock, "Alexandriaheadof medical services"by 4.93per cent to26.79pounds.
