Arabtec helps UAE outperform sluggish Gulf
Brent oil slipped 0.2 percent and traded near \\$55 per barrel after Saudi Arabia indicated it was now pumping near a record high of 10 million barrels per day, adding to concerns about global oversupply.
Petrochemicals giant Saudi Basic Industries (SABIC), whose earnings are sensitive to oil prices, slipped 0.5 percent, but the kingdom's main stock index added 0.1 percent thanks to foodmakers Savola Group and Almarai .
Savola surged 6.7 percent to 73.75 riyals after plunging 10.1 percent in the previous two sessions because of a cut in its first-quarter profit forecast.
NBK Capital on Sunday upgraded the stock to "hold" from "sell", raising its fair value estimate 10 percent to 77.00 riyals on an improved medium-term outlook.
Dairy firm Almarai, in which Savola is the biggest shareholder with a 36.5 percent stake, rose 5.3 percent on Monday after Egyptian newspaper Al Borsa reported that the company planned to invest \\$400 million in the country.
According to the report, Almarai plans to expand its plant and build a new dairy farm, and is also eyeing acquisitions in the sector.
UAE, EGYPT
Dubai's index jumped 2.2 percent as trading focused on Arabtec, which rose 3.8 percent to 2.45 dirhams. The stock, which had tumbled its daily 10 percent limit in the previous session, bounced off major technical support around its July 2014 low of 2.35 dirhams.
Arabtec said on Sunday it had swung to net loss of 94.4 million dirhams (\\$25.7 million) in the fourth quarter of last year. It also proposed no cash dividend, offering a 5 percent bonus share issue instead.
Abu Dhabi's benchmark rose 1.3 percent and First Gulf Bank , up 2.6 percent, was one of the main supports. The bank's chief executive, Andre Sayegh, told UAE newspaper The National that the lender was considering expanding into Egypt.
Oman's index edged down 0.4 percent, largely because of ex-dividend Oman Telecommunications, while Qatar and Kuwait were nearly flat.
Egypt's market edged up 0.2 percent on the back of blue chips Talaat Moustafa Group and Commercial International Bank, which rose 2.5 and 0.6 percent respectively.
Carpet maker Oriental Weavers climbed 0.5 percent after its board proposed a 0.4 Egyptian pound dividend for 2014, unchanged from 2013.
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