Stock markets in the Gulf made small gains in early trade on Wednesday with investors buying small and mid-sized shares, while Qatar’s index slipped as the FTSE passive funds inflow faded.
Riyadh’s index rose 0.3 per cent to 5,943 points after 45 minutes of trade, pulling slightly away from its technical support at the August low of 5,911 points.
Petrochemical shares firmed as Brent futures bounced back over US$46 a barrel. The largest listed producer Saudi Basic Industries added 0.3 per cent.
The insurance sub-index added 1.1 per cent as almost all the constituents advanced, recouping some of the heavy losses of the week. BUPA Arabia, a mid-sized medical insurer, rose 0.9 per cent.
Generally, local day traders tend to turn to the smaller sized companies and speculative shares to turn a quick profit, especially after an extended period of decline.
In Dubai, small and mid-sized shares generated the majority of turnover, pulling the stock index up 0.4 per cent. Shuaa Capital, the most traded stock, jumped 5.6 per cent.
Meanwhile Qatar’s stock index edged down 0.2 per cent, after advancing 1.0 per cent on Tuesday as passive funds flowed into the companies now included in FTSE’s secondary emerging market index.
Seven of the 22 shares which are now FTSE members pulled back, with Qatar National Bank falling 0.6 per cent while five of them advanced with Masraf Al Rayan adding 0.3 per cent.
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