Stock markets in the United Arab Emirates rose in early trade on Monday on the back of blue-chip banks and property companies, while Qatar’s bourse was nearly flat.
Dubai’s index added 1.1 per cent as Emaar Properties and Dubai Islamic Bank rose 1.5 per cent each. Index compiler MSCI said last week it would increase the weightings of both stocks in its emerging markets benchmark.
Shares in contractor Arabtec Holding jumped 2.6 per cent after a major shareholder, Abu Dhabi state fund Aabar Investments, bought a 5.1 per cent stake in Egypt’s second-largest listed real estate developer Palm Hills .
Some investors appeared to be speculating that Aabar’s link to Palm Hills could steer more Egyptian business towards Arabtec.
Abu Dhabi’s index rose 0.7 per cent, largely on the back of Abu Dhabi Commercial Bank, which jumped 5.1 per cent. Waha Capital, whose shares surged 7.0 per cent on Sunday after the company said its third-quarter profit more than doubled, added another 1.4 per cent.
Qatar’s benchmark was nearly flat as heavyweight Industries Qatar pulled back after rising on Sunday because of index weight increases awarded by MSCI. Although the news was positive, the move had been largely anticipated by the market.
The stock, which gained 1.7 per cent on Sunday, edged down 0.3 per cent. Meanwhile, shares in Gulf International Services which MSCI said will joined its emerging markets benchmark at the end of November, added a further 1.9 per cent.