DUBAI: Bourrses across the Gulf gained on Monday along with global markets, with the exception of Kuwait, where property stocks dropped after a local developer reported a widening third-quarter loss.
“There is enough momentum to push markets right now and there are at the moment no negative external factors,” said John Sfakianakis, chief investment strategist at Saudi investment firm MASIC.
Dubai posted the biggest gain on Monday, jumping 1.5 percent, although analysts said the move reflected its increased volatility in the run-up to the Nov. 27 decision on the emirate’s bid to host the Expo 2020 world fair. Abu Dhabi’s bourse rose 1.1 percent.
Major property developer Emaar rose 1.8 percent. Drake and Scull climbed 3.1 percent after it said a wholly owned German subsidiary won a 179 million dirham ($48 million) deal to build waste water treatment facilities in Egypt, suggesting the company’s efforts to expand its international business may be bearing fruit.
But the Dubai market – which sits on the region’s highest year-to-date gain of 73 percent – remains susceptible to large swings based on Expo-related speculation, said Amer Khan, fund manager at Shuaa Asset Management.
“I continue to expect the market to be volatile,” he said.
Saudi Arabia’s and Qatar’s bourses posted smaller gains at 0.3 percent and 0.7 percent. The two indexes have been rising steadily for the last two weeks, hitting five-year highs on what analysts said was year-end dividend-hunting.
“I think the momentum is still there to see the index and the market consolidating at higher levels,” Sfakianakis said of the Saudi index, which reached 8,408 points. “The index…is clearing away from 8,000 towards 8,500.”
Kuwait’s index fell 0.6 percent to a two-week low after
developer MENA Real Estate reported a third-quarter net loss of 304,000 dinars ($1.1 million) compared with a loss of 225,000 dinars in the same period of 2012.