Dubai Stocks Lead Middle East Gains as Traders Seek Dividends

Updated on
  • Emaar Properties leads rise in Dubai’s DFM General Index
  • Tadawul starts new industry classification for stocks

Dubai Stocks Lead Middle East Gains

Dubai stocks gained the most in the Gulf, led by Emaar Properties PJSC, as investors hunt for dividends ahead of earnings season. Insurers in the emirate rose on merger speculation.

Emaar Properties, which accounts for about 22 percent of the DFM General Index, climbed 1.6 percent as analysts see the stock handing investors a dividend of 18 fils per share for 2016, according to data compiled by Bloomberg. Dubai’s gauge advanced for a sixth day, the longest streak since July, adding 1.8 percent on Sunday.

  • Dubai Islamic Insurance & Reinsurance Co. was the biggest gainer among insurers, rising 4.6 percent as traders exchanged 39 million shares, the most in two years. Investors are betting that some insurance companies in the emirate will merge, Ahmed Waheed, the Dubai-based vice president of the institutional desk at Mena Corp Financial Services LLC, said in an e-mail.
  • Kuwait’s SE Price Index rose 1.1 percent, Abu Dhabi’s ADX General Index increased 0.5 percent and Qatar’s QE Index gained 0.1 percent. Muscat’s MSM30 was little changed.
  • Saudi Arabia’s Tadawul All Share Index fell 0.8 percent. “Domestic investors are likely to be very focused on companies due to report this week,” said Julian Bruce, the head of institutional trading at EFG-Hermes U.A.E. in Dubai, a unit of the biggest publicly traded Arab investment bank.
  • Israel’s TA-25 Index fell 0.3 percent in Tel Aviv.
  • Egypt’s EGX30 Index advanced 0.5 percent.

What to Watch

  • Bank Albilad, Saudia Dairy & Foodstuff Co., Bank Al-Jazira and Qassim Cement Co. are among the companies expected to post results this week. Check the full list here.
  • The Tadawul started on Sunday a new industry classification for stocks traded within the bourse, aiming to enhance transparency and provide more reliable information on sector performance.
  • Investment Holding Group’s initial public offering started on Sunday in Doha and will continue until Jan. 22. The company is selling 49.8 million shares at 10.1 riyals apiece.
    • The company is seeking acquisitions that will lift earnings even if sales continue to decline, Chief Executive Officer Wael Shtayyeh said in an interview.
  • For more on events in the region, click here for the Mideast Daybook.

— With assistance by Sharon Wrobel

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