Gulf stocks diverge; Qatar rises after bank merger talks

Stock markets in the Gulf diverged on Tuesday, with Qatar gaining on the back of merger talks between three of its major banks that could create the country’s second largest lender.

Equities in the United Arab Emirates, however, slipped as trading activity remained weak.

Qatar’s QE Index climbed 1.2 percent to close at 10,394 points, boosted by the banking sector that outweighed losses in the industrial index. Masraf Al Rayan, which is part of the merger discussions, jumped 6.1 percent to QAR 37.65. Blue chip Qatar National Bank added 2.5 percent to reach QAR 161.1.

The benchmark index is closing in to the resistance level of 10,400, and could break through.

“Managing to do so would re-activate the buying potential and promote additional strength towards 10,600 points and maybe 10,900 points,” KAMCO Research said in its technical analysis of Qatar Stock Exchange.

In the UAE, Dubai’s main index fell 0.8 percent to 3,506 points as volumes remained thin at AED 314.2 million. Real estate giant Emaar Properties fell nearly 2 percent to AED 7.21. Arabtec was down 1.5 percent at AED 1.3.

Abu Dhabi’s general index closed flat at 4,479 points with Etisalat and First Gulf Bank pulling in opposite directions. The telecom giant rose 1.4 percent to AED 18.45, while the bank fell 1.2 percent to AED 12.65.

Elsewhere, Saudi Arabia’s Tadawul All Share Index (TASI) was last trading lower by 0.8 percent. All sectors were in the red except telecommunications. Mobily, the kingdom’s second largest telco, rose 1 percent to SAR 24.90 after it secured a SAR 2 billion loan from Alinma Bank.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com