Gains in banking sector stocks raised Abu Dhabi's main index closer to a 10-week high during the week as investors held a benevolent view of the sector. Abu Dhabi National Energy gained after the firm swung to a second-quarter profit bolstered by record oil and gas production and favourable market prices. Dubai’s gauge nudged higher helped by gains in shares of Emirates NBD. Air Arabia gained marginally despite posting a sharp improvement in its second-quarter profit.
Meanwhile, Saudi Arabia’s Tadawul index touched its six-year high during the week as the latest announcement by Saudi authorities to allow direct foreign ownership of shares from early 2015 continued to buoy investor sentiment. Shares of the recently listed Al Hammadi Company soared amid expectations that foreign investors would favour the stock which is poised to benefit from the growth in the Saudi healthcare sector.
Kuwait’s main index closed modestly higher benefiting from gains in shares of Kuwait Food (Americana) after Saudi Arabia's Savola Group stated that it was in preliminary discussions to acquire the firm. However, Oman’s benchmark index ended marginally lower pressured by weak earnings from some of the key firms, while Bahrain’s index closed in the negative territory. Bahrain's Islamic investment bank Gulf Finance House reported a surge in its second-quarter earnings.
According to the Saudi Capital Market Authority, a total of 85 real estate funds were operating in the country by the end of 2013, with total assets valued at SAR 25.5 billion. Public real estate funds achieved an average performance of 13.6 per cent during 2013.
According to an official from the Saudi Labor Ministry the decision to reduce the stay of expatriates in companies and establishments falling within the yellow Nitaqat zone is expected to affect about 300,000 expats. The Ministry has reduced the Iqama to four years from the present six starting 25th October and would cut it down to two years from April next year.
Kuwait’s headline inflation stood at an annual 2.9 per cent in June, unchanged from the previous month as a drop in prices of food items and household rent offset a rise in clothing & footwear and furnishings & household maintenance sectors. Core inflation, however continued to see moderate upward pressure, rising to 3.0 per cent in the month.
Annual inflation in Qatar stood at 3.1 per cent in July on account of an increase in rents and furniture & garments. The rent, fuel and energy component that has the maximum weightage in the gauge witnessed an increase of 7.6 per cent YoY. Excluding the rent component the index showed an increase of 1.4 per cent on a yearly basis.
Oman reported a budget surplus of OMR 582.9 million in the first five months of this year compared to a deficit of OMR 110.4 million posted during the same period of 2013. This was on account of a 0.5 per cent increase in overall government revenue to OMR 6,044.1 million despite a 2.6 per cent decline in net oil revenues to OMR 4,335.1 million.
Dubai’s consumer price index (CPI) rose 3.41 per cent on an annual basis in July and 0.46 per cent on a monthly basis as alcoholic beverages and tobacco segment witnessed the highest YoY price increase in July followed by housing and utility segment – up 6.3 per cent and 5.8 per cent, respectively.
