Optimism rallied at the end of today's sessions in most of the Arab stock markets, after the announcements made by most of the major companies for profits and good dividends, as well as the rebound in oil prices from its lowest level in the past six months, on the other hand the Egyptian market declined due to the selling profit-taking operations.
Specialists assured that they've noticed a clear improvement in investor sentiment after the good earnings announced by the major companies in the region, also there's no doubt that the rise of oil prices was a strong support in raising the stock markets particularly in the Gulf region.
By 15 September, the Brent rose by 1.42% making $ 50.7 a barrel, and the US crude oil rose by 1.49% making $ 46.42 a barrel. The markets seems to continue to rise unless any negative news occur in the near future that may disturb the brokers, but predictions points out that the rise will continue and more liquidity from investors and institutions will keep the market status ongoing.
The Dubai Mercantile Exchange led the gainers, with a rise in the index by 1.66%, which is considered its largest daily gain for more than two weeks, and that’s was with the help of the rising real estate stocks. Damac real estate stock jumped to 15%, after the company announced its profit rise by 52% to 721.3 million dollars in the first half of this year, followed by a smart recommendation by the board of directors to divide 10% cash of the capital to shareholders, and bonus shares of 10%. Also Arabtec Company managed to rise by 6.6%, and announced on its official website that the 1 million housing unit in Egypt is still under negotiation with the Egyptian government.
The emirate Du Communications boosted the pace of the market up to 1.69%, despite its low mid-term profits, but the announcement of a good dividend to shareholders boosted the pace of the stock. Also the company stated earlier today that the decline in the mid-term profits for this year was by 4.7%, and the board of directors recommended to divide 23% cash of the capital to shareholders.
The Abu Daubi stock market also increased but in a lesser degree amounted by 0.64%, thanks to the increase in the energy stocks led by Abu Dhabi National Energy Sector and Dana Gas, by about 6.7%, and 5.6%, respectively.
Saudi Arabia the largest stock market in the Arab world, rose by over 0.24% thanks to the rise of agriculture sector stocks like Savola and Almarai by 1.7% and 1.6%, respectively. And some stocks like Mobily, Al Tasnea and Kyaan was among the few stocks declining by rates ranging between 0.8% and 1.3%.
The Kuwait stock market managed to keep its rise for the second session in a row, with an increase by 0.23%, due to the rise of small and medium-sized stocks, led by Kuwait Cable, and Alcinema Alwatnyaa, by 8%, and 7.8% respectively. Also there were an increase in the shares of Alnawadi Holdings by over than 2.35%, after the company announced in its statement that its Board of Directors has agreed to withdraw from the stock market due to the falling market value and low liquidity, while the Jordan Stock market increased by 0.56%.
On the other hand, Egypt Stock market decline due to the several successful attempts of profit-taking operations after a strong rally in the previous session, the main index declined by 0.83%, driven by a decline of large corporations like Amer Group, International Commercial Bank and "Sodic" real estate company.