Most exchanges in the Middle East rebounded on Sunday after global stock markets recovered on Friday from a big sell-off triggered by worries about the impact of weak earnings reports on growth and businesses.
Those worries had sent Middle East bourses tumbling, with Dubai’s index down 13.6 per cent last week. Saudi Arabia lost 12.0 per cent and Egypt dropped 10.0 per cent over the same period.
But on Friday, when markets in the Middle East were closed, European stocks surged by the most in more than two years as investors bought back into beaten-down markets after further, soldid, U.S. corporate earnings and rising consumer sentiment.
Wall Street followed Europe’s lead, with all major stock indexes climbing more than one per cent after earnings reports eased concerns about the impact of weak global demand on U.S. growth and businesses.
Dubai’s bourse jumped 3.5 per cent after tumbling 5.0 per cent in the previous session. Most stocks posted gains and builder Arabtec Holding was one of the top performers, surging 8.1 per cent.
Arabtec said on Sunday it expected soon to conclude a final agreement with Egyptian authorities to begin work on a $40 billion project to build one million homes.
Abu Dhabi’s index added 0.5 per cent as Abu Dhabi Commercial Bank rose 1.9 percent and Abu Dhabi Islamic Bank surged 5.7 per cent. Qatar’s benchmark rose 1.6 per cent, also in a broad rally.
Saudi Arabia’s main index rose 2.4 per cent as most stocks gained. Alinma Bank was the main support, surging 9.5 per cent. The lender has yet to publish its third-quarter earnings and other local banks have so far posted mixed results.
Al Rajhi Bank, Saudi Arabia’s largest listed lender, missed analyst forecasts with a profit drop, while Riyad Bank, Saudi Hollandi and Saudi British Bank matched expectations and Banque Saudi Fransi posted better-than-expected results.
Shares in retailer Jarir Marketing jumped 5.0 per cent after its chairman told Reuters in an interview that the firm planned to invest SAR1.1 billion ($293 million) over the next five years to roughly double the number of its stores in Saudi Arabia and the Gulf.
Egypt’s index also edged up early in the session but then changed direction and closed 0.8 percent down as most shares declined.
“Basically, it’s just consolidation,” said Allen Sandeep, director of research at Naeem Brokerage in Cairo.
Egypt’s central bank kept its main interest rates unchanged at a policy meeting last Thursday but said it was keeping an eye on the risks to recovery posed by mounting concerns about the global economy and fears of a resurgence in European debt problems.