Heavyweight banking stocks were in the spotlight this morning as a sharp rebound in the Saudi market over the weekend prompted investors to snap up cheap stocks. Shares in property stocks led the momentum as Emaar Properties added 6.6 per cent to Dh2.57.
Deyaar Development also rose 6.2 per cent to 22 fils, its biggest intraday gain since November 2010.
In the capital, shares in 18 companies were in the black and no stocks were down.
First Gulf Bank added 2.6 per cent to Dh15.55. Last week, it converted bonds worth Dh3.6bn into shares earlier than scheduled increasing its share capital to Dh1.5bn from Dh1.375bn.
Amjad Bakr, trading manager at Wafa Financial Services said the rebound was normal and it will not be sustained.
"I don't recommend anyone to buy at this panic buying [but] I've seen this market a hundred times before," he said.
Dubai's market rose nearly 5 per cent at 1,403.82 points and Abu Dhabi's measure was 1.2 per cent higher at 2,559.42 points.
Saudi Arabia's market, the region's largest and most liquid, closed 7.3 per cent higher on Saturday to halt a 13-session losing streak that saw it drop about 20 per cent on fears of spreading regional unrest.
Many stocks in the kingdom are trading at a cheaper price to earnings ratios than the average, particularly in the petrochemicals, retail and consumer-related sectors such as food and beverages.
Zain's shares were trading 3 per cent higher at 1.3 Kuwaiti dinars on the Kuwaiti market.
The company said its full year 2010 net profit excluding a capital gain from selling its African assets rose 50 per cent on year to 293 million Kuwait dinars
[ fhalime@thenational.ae ]
