UAE stocks gain on FTSE index review

An influx of foreign funds due to changes in some FTSE indexes boosted stock markets in the United Arab Emirates and Qatar on Thursday, while Egyptian real estate developer Medinet Nasr surged after announcing an ambitious sales target.

Dubai's main index rose 2.3 per cent as Emaar Properties, the emirate's largest developer, jumped 5 per cent to Dh11.60.

Emaar had peaked at Dh12 this month after announcing the launch of the initial public offer of its subsidiary Emaar Malls Group (EMG). But the stock then came under pressure as retail investors sold some of their holdings in the parent company in order to raise cash for purchases of EMG. That wave of selling appears to have ended.

Shares in smaller developers Deyaar and Union Properties added 3.2 and 2.8 per cent respectively ahead of their inclusion in the FTSE All-World index, which will take effect on Sept. 22.

The index compiler is also adding Abu Dhabi Commercial Bank to the benchmark, but the lender's shares fell 1.1 per cent on Thursday, having already added 6.8 per cent since the announcement on Sept. 4.

However, other banking stocks helped lift Abu Dhabi's bourse  by 1.2 per cent. National Bank of Abu Dhabi  jumped 5.8 per cent and First Gulf Bank rose 1.3 per cent.

Qatar's benchmark rose 1.3 per cent. Islamic lender Masraf Al Rayan dominated trading, adding 1.6 per cent ahead of its inclusion in the FTSE Frontier 50 Index.

Shares in Al Khaliji Commercial Bank fell 1.1 per cent after the bourse said it would exclude the stock, along with Al Meera Consumer Goods Co, from the main index on Oct. 1.

 SAUDI, EGYPT

The main Saudi index slipped 0.2 per cent as some banks and petrochemicals pulled back. Al Rajhi Bank  edged down 0.6 per cent and Yanbu National Petrochemical Co  fell 1.3 per cent.

Egypt's bourse rose 1.6 per cent to a fresh six-year closing high of 9,729 points. Property firm Medinet Nasr for Housing and Development surged its daily limit of 10 per cent to 47.43 Egyptian pounds after saying in a bourse statement that it targeted sales of 2.0 billion pounds ($280 million) from its Tag Sultan project.

Cairo-based Naeem brokerage said the figure was slightly above its own estimates and maintained a "buy" recommendation on the stock, while CI Capital raised its target price for Medinet Nasr to 54.60 pounds from 28.00 pounds.

Shares in Commercial International Bank, which co-financed the Tag Sultan project, rose 2.7 per cent.

 THURSDAY'S HIGHLIGHTS

DUBAI: The index rose 2.3 per cent to 5,098 points.

ABU DHABI: The index climbed 1.2 per cent to 5,233 points.

QATAR: The index gained 1.3 per cent to 14,351 points.

EGYPT: The index rose 1.6 per cent to 9,729 points.

SAUDI ARABIA: The index slipped 0.2 per cent to 11,062 points.

KUWAIT: The index edged up 0.2 per cent to 7,598 points.

OMAN: The index inched up 0.1 per cent to 7,505 points.

BAHRAIN: The index slipped 0.4 per cent to 1,467 points.

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