KHALEEJ TIMES, Monday, Jan 4, 2021 | Jamadi Al Awwal 20, 1442
UAE stocks gain, Saudi slips on first trading day of 2021
Emirates:
Stock markets in the UAE closed higher on Sunday, starting 2021 on a
positive note on hopes that the rollout of a coronavirus vaccine will lift
economic activity, while Saudi Arabian shares fell on uncertainty about the
outlook for oil prices this year.
The UAE on Saturday recorded a fourth straight record number of daily
coronavirus cases, with 1,963 new infections.
Dubai and Abu Dhabi have begun rolling out Covid-19 vaccines, which BofA said in
a note are particularly pertinent for the UAE given its exposure to trade and
tourism.
“We believe the vaccine provides a realistic chance that the travel & tourism
sector (including attendance at the Expo) and trade could rebound more strongly
than currently anticipated,” said the statement.
Expo 2020, due to take place in Dubai but delayed due to the pandemic, will now
take place from October 2021 to March 2022.
Abu Dhabi’s stock index rose 0.7 per cent, led by a 1.7 per cent increase in
First Abu Dhabi Bank, while telecoms firm Etisalat gained 0.7 per cent.
The Dubai index was up 0.6 per cent, supported by gains in financial and real
estate shares. Emirates NBD rose nearly two per cent, while Emaar Properties was
up 1.4 per cent.
The share index in Saudi Arabia fell 0.9 per cent as most of its constituents
closed in negative territory. Al Rajhi Bank led the losers, dropping 1.2 per
cent.
Chemical maker Saudi Basic Industries shed 0.8 per cent, while Saudi Aramco was
down 0.4 per cent.
Oil prices are unlikely to mount much of a recovery in 2021 as a new coronavirus
variant and related travel restrictions threaten already weakened fuel demand, a
Reuters poll showed. According to the poll, Brent crude prices would average
$50.67 per barrel this year.
The Qatari Index closed flat as Qatar Fuel gained 1.2 per cent and Commercial
Bank shed 1.2 per cent.
A Gulf Cooperation Council (GCC) summit will be held on January 5 to discuss
steps towards ending a diplomatic row with Qatar that began in 2017 when Saudi
Arabia, the UAE and Bahrain severed diplomatic ties with Qatar, accusing it of
backing “terrorist” groups. Doha denies the charge and accuses its neighbours of
seeking to curtail its sovereignty.
“I see some regional companies from Saudi, UAE and Qatar benefiting if these
countries reach a settlement to the issues and remove the blockade,” said Joice
Mathew, senior research manager at United Securities.
In Egypt, the index was also flat. Cleopatra Hospital eased 2.9 per cent, while
GB Auto jumped 6.9 per cent.
The Omani index ended 0.6 per cent higher. Stock markets in Kuwait and Bahrain
were closed.
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