May 19 (Bloomberg) -- Oman shares advanced the most in more than two weeks, rising for the first time in 10 days, on bets a drop prompted by lower first-quarter earnings was overdone.
Renaissance Services SAOG, an Omani provider of services to the oil and gas industry, climbed as much as 0.8 percent. Oman Telecommunications Co., the Persian Gulf country’s biggest telephone company, gained the most in more than a week. The MSM30 Index rose 0.3 percent to 6,048.33, the most since May 2, at the 1 p.m. close in Muscat, trimming its drop for the week to 1.8 percent. Kuwait’s measure lost 0.2 percent and Dubai’s DFM General Index fell 0.4 percent.
“Institutional buying interest is seen at the current lower levels,” said Kanaga Sundar, senior manager of research at Gulf Baader Capital Markets SAOC in Muscat. The market had dropped “in the negative zone on lower volumes with the added impact of disappointing first-quarter earnings of some index heavyweights.”
Oman’s gauge, down 10 percent so far this year, is valued at about 1.7 times net assets, or book value, while Saudi Arabia’s Tadawul All Share Index is valued at 2 times net assets and the MSCI Emerging Markets Index at 1.9.
Renaissance, the company with the fourth-heaviest weighting on Oman’s index, last week said first-quarter profit tumbled to 935,000 rials ($2.4 million) from 4.69 million rials the year-earlier. The shares advanced as high as 0.945 rial today before closing at 0.941 rial.
Omantel, which also said first-quarter profit dropped last week, rose 0.3 percent, the most since May 11, to 1.093 rials. Net income fell 20 percent to 26 million rials as operating expenses increased. The company has the second-biggest weighting on Oman’s index.
In Dubai, Emaar Properties PJSC, builder of the world’s tallest skyscraper, lost 0.9 percent to 3.17 dirhams after the company said it will write off its investments in Dubai Bank PJSC in the second quarter of this year.
Dubai Bank, an Islamic lender 70 percent owned by Dubai Holding LLC and 30 percent by Emaar, was rescued by the Dubai government after loan losses mounted as the emirate grappled with a debt crisis.
The Bloomberg GCC 200 Index was little changed. In the United Arab Emirates, Abu Dhabi’s measure slipped 0.2 percent. Bahrain’s benchmark dropped 0.3 percent, while Qatar’s index gained 0.2 percent. Saudi Arabia’s market was closed for the weekend.
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