28/03/2011
Investors hope for strong Q1 results
TASI hits a six-week closing high
Most Middle East markets rallied on Sunday as investor bet on strong first-quarter results and positive sentiment from Saudi Arabia's additional social spending plan resulted in sustained gains.
Saudi Arabia's Tadawul All-Share Index (TASI) hits a six-week closing high, with small cap stocks attracting high volumes and foreign funds. Only three large-cap stocks gained among the top 10. The index closed 0.21 percent higher at 6,519.76 points on Sunday. The sector activity for the day was all positive except 3 losing sectors.
The gaining sector ranged from 0.02 percent by the Telecommunication & Information Technology sector to 2.06 percent by the Media and Publishing sector. On the other hand the losing sectors were the Industrial Investment, the Petrochemical Industries and the Hotel & Tourism sectors with 0.04 percent, 0.14 percent and 1.94 percent.
The overall market breadth for the day was positive with 100 advancers against 32 decliners giving it an AD ratio of 3.125, the Financial Transaction House (FTH) — licensed by the Capital Market Authority (CMA) — said in its daily market report.
The stock market turnover reached SR5.13 billion on Sunday.
Egypt's benchmark index rose 5.3 percent to 5,212 points.
The Dubai index gained 0.2 percent to 1,556 points, while the Abu Dhabi benchmark climbed 0.5 percent to 2,646 points.
"There's been a re-rating in the UAE market, partially driven by strength in Saudi Arabia," Reuters quoted Walid Shihabi, Shuaa Securities chief executive, as saying.
"Price points have been pressured significantly...unfairly beaten down by regional trends," he said, adding that further upside is likely.
Qatar's index rose as foreign investors injected more funds in the Gulf. The index jumped 1 percent to 8,393 points.
Kuwait's index edged up, helped by Gulf Bank which added 2 percent.
Oman's index bucked the regional upside trend and closed lower..The index fell 0.2 percent to 6,390 points.
The Bahraini measure rose 0.3 percent to 1,427 points, Reuters said.
