By: Mahmoud Gamal
Dubai – Mubasher: Gulf stock market indices rose at the end of 2016 following a major improvement in oil prices after the success of the Organisation of Petroleum Exporting Countries’ (OPEC) meeting along with its agreement with non-OPEC members to cut output in 2017.
Analysts told Mubasher that the continued improvement in oil prices has helped GCC bourses rise in recent weeks.
The Dubai Financial Market (DFM) recorded the highest gains this year, rising by 12% to 3,530.8 points, on the back of Emaar’s 25.3% gain, SHUAA’s 264.5% surge following major changes in its shareholders and DAMAC’s 9.05% rise after it announced that it was likely to deliver good dividends.
Ali Al-Anzy, technical analyst at KAB Kuwait, noted that GCC bourses commenced the year on a low note with stocks seeing sharp declines when oil prices amounted to $27 per barrel.
OPEC’s November agreement along with its deal with non-OPEC members in December this year has helped restore liquidity to the markets along with notable gains for several stocks, he added.
Meanwhile, the Abu Dhabi Securities Exchange (ADX) grew 5.5% in 2016 as trades were focused on real estate companies, with Eshraq jumping 89.09% following the announcement of expansion plans, while Aldar gained 13.366%.
The Saudi Stock Exchange’s (Tadawul) general index (TASI) increased 4.3%, reaching 7,210.43 points with AlRajhi and Saudi Basic Industries Corp. (SABIC) rising 21% and 19.6%, respectively.
Boursa Kuwait gained 2.37% backed by Americana’s 34.02% jump following the historic acquisition by a UAE company on some of its shares, while Agility added 27.8%.
The Muscat Securities Market (MSM) increased 7% in 2016 to 5,406.22 points, after Port Services grew 75.37%. The Qatari bourse edged up 0.07% to 10,429.36 points after Industries Qatar and Qatar Water and Electricity 6.8% and 2.7%, respectively.
Finally, the Bahrain Bourse was up 0.38% as Al Seef and the National Bank of Bahrain (NBB) gained 8.9% and 2.16%, respectively.
As oil prices exceed $55 pb amid expectations that they might rise above $60 pb if the OPEC deal and non-OPEC member agreement are implemented, investors will begin to increase their positions in stocks in the coming period, Al-Anzi told Mubasher.
The analyst advised investors to keep a close eye on companies’ estimates for their annual financial results.
Translated by: Nada Adel Sobhi
