Gulf stocks firm on oil

Dubai : Most major Gulf stock markets rose yesterday after oil prices hit new 2-1/2 year highs, with Qatar’s bourse gaining for a sixth straight day as investors positioned themselves for annual dividends.

The Qatari index fell early on but closed 1.0 per cent higher in active trade. Foreign investors turned net sellers for the first time in several days, exchange data showed.

Doha Bank surged 3.7pc in its heaviest trade since the end of November while Qatar National Bank, the biggest lender, rose 1.5pc. Medicare Group added 6.9pc in its highest volume since last March.

The Saudi stock index rose 0.5pc with 11 of 14 petrochemical shares gaining in response to the oil price. PetroRabigh, which has also been boosted by news of production starting at its Phase II complex, added a further 4.8pc. It has jumped 19.5pc this year.

Saudi British Bank surged 3.2pc and Alawwal Bank rose 1.9pc after financial sector sources said that their proposed merger, which is under discussion, had been delayed but not derailed.

Dubai’s index edged down 0.1pc as the most heavily traded stock, amusement park operator DXB Entertainments , pulled back 1.6pc after surging 13pc this year.

Egypt’s index rose 0.3pc as real estate developer Emaar Misr gained 2.9pc to 3.85 Egyptian pounds after EFG Hermes resumed coverage of the stock with a “buy” rating and a target of 5.20 pounds.