MIDEAST STOCKS-UAE, Qatar climb after MSCI raises index weights – Reuters

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* MSCI decision boosts wide range of stocks in UAE, Qatar

* Abu Dhabi’s UNB falls after failing to secure inclusion

* Dubai developers, contractor join small-cap benchmark

* Saudi Arabia’s Mobily rebounds after sharp drop

* Blue chips drag on Egypt

By Olzhas Auyezov

DUBAI, Nov 9 (Reuters) – Stock markets in the United Arab
Emirates and Qatar outperformed the region on Sunday after index
compiler MSCI raised the two countries’ weights in its emerging
markets index in a move promising fresh foreign fund inflows.

In a semi-annual review, published at the end of last week
and taking effect at the end of this month, MSCI removed a 0.5
“adjustment factor” for a number of stocks which it had
introduced in May because of accessibility problems for foreign

It also increased the “foreign inclusion factor” for UAE’s
First Gulf Bank (FGB), doubling its weight, and added
Qatar’s Gulf International Services to the emerging
markets benchmark.

Abu Dhabi’s index rose 1.6 percent, largely on the
back of FGB, which jumped 5.3 percent. Shares in investment firm
Waha Capital surged 7.0 percent to 2.92 dirhams after
the company said its third-quarter profit more than doubled

Waha’s shares broke technical resistance at 2.85 dirhams,
the late October peak, triggering a bullish right triangle
formed by the highs and lows since mid-October and pointing up
to 3.16 dirhams.

Meanwhile, shares in Union National Bank dropped
5.2 percent; investors had hoped it would also become part of
the MSCI index following the November review, but MSCI chose not
to include the stock.

Dubai’s benchmark rose 1.1 percent. Heavyweights
Emaar Properties and Dubai Islamic Bank
added 2.0 and 0.3 percent respectively after MSCI increased
their weights.

Real estate developers Deyaar and Union Properties
added 1.9 and 1.8 percent, while construction firm
Drake & Scull rose 0.9 percent. MSCI added the three
names to its UAE small-cap index.

Qatar’s main index added 0.8 percent as blue chips
Qatar National Bank and Industries Qatar
rose 1.7 and 1.4 percent in response to MSCI weight increases.

Also on MSCI’s list were Doha Bank, which gained
1.2 percent, and Commercial Bank of Qatar, up 0.7
percent. New emerging markets index constituent Gulf
International Services rose 1.9 percent.

Analysts estimate the UAE and Qatar could each attract
around $1 billion in total of additional foreign funds because
of the latest MSCI decision – not much compared to their
national market capitalisations of around $200 billion, but
enough to stimulate trade in the short term.

Shares in developer Barwa Real Estate surged 7.6
percent, continuing a leg up which began last week after the
firm launched a 500 million riyal ($137 million) commercial
development near downtown Doha and bought a 50 percent stake in
Lusail Golf Development for 2.48 billion riyals.

Akber Khan, director of asset management at Al Rayan
Investment in Doha, said trading volume in the stock indicated
interest from institutional investors.

“This is clearly institutional buying because five million
shares traded is a lot of money,” he said.


Saudi Arabia’s index edged up 0.4 percent as
telecommunications operator Mobily rose 3.9 percent,
rebounding after tumbling by its 10 percent daily limit for
three sessions in a row.

Last Monday, Mobily cut its profits for 2013 and the first
half of 2014 by a combined 1.43 billion riyals ($381.2 million),
citing accounting errors, and also reported a 71 percent plunge
in third-quarter profit. Mobily’s actions prompted the bourse
regulator to launch a probe.

Egypt’s benchmark edged down 0.5 percent as most
blue chips pulled back. Shares in Commercial International Bank
fell 0.4 percent and brokerage EFG Hermes
was down 1.7 percent.

Shares in Palm Hills, Egypt’s second-largest
listed real estate developer, fell 2.3 percent even though the
company reported a 152 percent jump in third-quarter net profit
on Sunday. The company also said Abu Dhabi state fund Aabar
Investments had acquired a 5.1 percent stake in it.



* The index rose 1.1 percent to 4,453 points.


* The index added 1.6 percent to 4,867 points.


* The index gained 0.8 percent to 13,692 points.


* The index edged up 0.4 percent to 9,689 points.


* The index edged down 0.5 percent to 9,373 points.


* The index rose 0.7 percent to 7,183 points.


* The index slipped 0.2 percent to 6,905 points.


* The index edged up 0.1 percent to 1,443 points.

(Editing by Andrew Torchia)

MIDEAST STOCKS-UAE, Qatar climb after MSCI raises index weights – Reuters}