Most mideast markets trade narrowly

Dubai : Most Middle East stock markets traded in narrow ranges yesterday while Saudi Arabia was dragged down by several major blue chips.

The Saudi index dropped 0.7 per cent as Al Rajhi Bank lost 1.0pc and miner Ma‘aden sank 1.9pc. Petrochemical producer Saudi Basic Industries fell 0.7pc.

Insurers were roughly evenly split between gainers and losers after they tumbled last week on expectations for a shakeout in the sector caused by tougher regulation. Amana Insurance, which had plunged 14.9pc last week, surged 5.8pc in unusually heavy trade.

Food company Almarai rose 3.4pc after saying the Public Investment Fund, the main Saudi sovereign wealth fund, had retained a 16.3pc stake in the company after a 25pc capital increase through an issue of bonus shares.

Dubai’s index edged down 0.1pc to 3,658 points, retreating from technical resistance at 3,667-3,681 points, the August and September peaks.

Islamic Arab Insurance, the most heavily traded stock, surged in early trade but closed 2.4pc lower. On Thursday, it had risen sharply in its heaviest volume since March, attracting speculative traders into the stock.

Abu Dhabi fell 0.2pc as Dana Gas sank 3.8pc after a London High Court judge adjourned hearings on its $700 million of Islamic bonds to mid-November.

The company is fighting sukuk holders in courts in Britain and the United Arab Emirates, arguing it does not need to redeem the instruments because they have become invalid; some equity investors have been hoping the hearings will result in a settlement that benefits the firm.

Qatar’s index was almost flat. Qatar National Bank , which last week reported solid third-quarter earnings, climbed 1.2pc.

Egypt’s index edged up 0.1pc. GB Auto surged 9.7pc in unusually heavy trade.