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MENA Markets Gain 12.4 Per Cent in May

Last month’s gains brings the total gains in the MENA stock markets since January to 15 per cent, with Qatar emerging as the best-performing market in the region in May, while Egypt overtook Saudi Arabia as the best-performing Arab market to date, regional investment banking company Rasmala said in a report.

Rasmala said the UAE equity markets gained a combined 11 per cent on renewed buying interest by foreign investors. Gainers were paced by real estate stocks, led by Emaar Properties which surged by a hefty 48 per cent, with Arabtec Holding, Sorouh Real Estate and Aldar Properties, gaining 37 per cent, 24 per cent and 28 per cent, respectively. Shuaa Capital, a UAE-based investment bank, jumped by 70 per cent on speculation that the company will strike a deal with Dubai Banking Group over its convertible bonds.

Saudi Arabia, the largest MENA equity market ended May with a gain of 4.8 percent to bring its gains so far to 22.7 per cent. Index mover Saudi Arabian Basic Industries Corp. or SABIC, which accounts for 11 per cent of the Tadawul Index, gained 37 per cent in May.

The Kuwaiti market gained 7.9 per cent in May, bringing total 2009 gains to 4.7 per cent. Agility, the Middle East’s largest logistics company, gained 33 per cent after the company renewed a contract worth $1.4 billion with the US army. Zain gained 28 per cent in May and has been invited to bid for Iran’s third mobile license. Despite reporting a first-quarter loss of KWD69.5 million, Global Investment House’s share price surged by 55 per cent.

Qatar equities rose by 24.6 per cent, driven by higher oil prices and the government’s offer to buy local banks’ real estate investments. Industries Qatar, the largest listed company in Qatar in terms of market capitalisation, gained 35 per cent due to stronger petrochemical and fertiliser prices. The Qatari banks index added 8 per cent after the government said it will buy local banks’ real estate investments worth as much as QAR15 billion. Qatar National Bank, Qatar Islamic Bank and Commercial Bank of Qatar gained 16, 24 and 28 per cent, respectively.

Oman equities advanced 7.2 per cent in May to post marginal gains of 1.1 per cent since January. Gainers included Bank Muscat which gained 7.5 per cent and, Oman Telecommunications Company which edged up by 2.3 per cent.

Egypt, the largest market outside the Gulf Co-operation Council gained 13.6 per cent, taking its gains so far this year to 29 per cent, and overtaking Saudi Arabia as the best-performing Arab market in the year to date. High liquidity levels were maintained and were led by retail investors, who accounted for around 70 per cent total market transactions.

Telecom Egypt and Commercial International Bank gained 16 per cent and 17 per cent, respectively. Orascom Construction Industries and Egyptian Kuwaiti Holding Co. share prices rose by 29 per cent and 16 per cent, respectively due to higher fertilizer and oil prices. — rocel@khaleejtimes.com