Oman, other Gulf bourses surge ahead on oil recovery

Muscat: Omani stocks surged ahead on firm trend in oil prices and better corporate earnings of listed companies on the local bourse.
The MSM 30 Index soared by 1.28 per cent or 75 points to touch 5,891.89 points amid better buying support from both local and foreign investors.
Market sources said that the firm trend in oil prices, which touched above $40 per barrel on Friday, aided the recovery. There are expectations that the oil recovery will continue in the coming days, said a market analyst. Also, corporate earnings in general were better than market expectations. Several industrial segments like financial institutions and service sectors have performed well in the first quarter.
Market sources addedthat foreigners have been investing in Oman bourse for the last couple of weeks, which has resulted in a growth in trading volume as well. The market turnover touched OMR10.70 million amid 52.02 million shares changing hand on Sunday.
The average daily market turnover is almost double, when compared to the volumes seen in January this year when the market was falling.
The major gainers on Sunday included Galfar Engineering and Contracting, Port Services Corporation, HSBC Bank Oman, Al Jazeera Steel, Al Hassan Engineering and Al Sharqia Investment Holding.
Saudi gains
Saudi Arabian stocks led an advance across most Gulf equities as the Kingdom prepared to announce a road map for the post-oil era.
The Tadawul All Share Index added 1.3 percent to 6,670.21 at 11:42 a.m. local time, extending gains after it entered a so-called bull market on Thursday. The Kingdom is scheduled to set out a comprehensive plan on Monday to diversify its economy and shore up government finances after a collapse in oil prices. The Bloomberg GCC 200 Index, which tracks the region’s largest and most liquid stocks, rose 0.4 percent.
The "Vision for the Kingdom of Saudi Arabia” will encompass several developmental, economic, social and other programmes, the country’s deputy crown prince told Bloomberg this month. Stocks in the Arab world’s biggest economy, which have the highest correlation to oil prices among gauges in the six-nation Gulf Cooperation Council, have been whipsawed as crude plunged this year to the lowest level in more than a decade.
"The key piece of news will be the announcement out of Saudi Arabia tomorrow on its transformation plan,” said Sebastien Henin, the head of asset management at The National Investor in Abu Dhabi. "Investors, including us, are on the sidelines until we know what their plan is. We don’t know what the impact of the announcement will be on markets, so investors are in wait-and-see mode.”
The rally in Saudi Arabian stocks has driven valuations to the highest in six months. Companies on the gauge are trading at about 13 times expected earnings, compared with about 12 times for those on MSCI Inc.’s emerging-markets measure.
Du Rally
Dubai’s DFM General Index was little changed as about 182 million shares traded, 43 percent below the 20-day intraday average. Emirates Integrated Telecommunications Co. led advancers with a 2.3 percent increase. The company known as Du has gained 9.3 percent in the past five days as trading volumes spiked.
"Speculation that the company may adjust its foreign ownership limits is driving Du higher,” said SanyalakManibhandu, the Abu Dhabi-based head of research at NBAD Securities LLC, who has a reduce rating on the stock. His price target is 6 dirhams, 10 percent below Sunday’s level. "Even if the company does change its ownership structure, it might be too late for it to be included in MSCI’s next review.”
Abu Dhabi’s ADX General Index fell 0.6 percent.
Qatari banks
Kuwait’s SE Price Index gained 0.3 percent. Human Soft Holding Co., a training company, advanced for a sixth day, adding 6.9 percent to the highest in more than a month. That brings the increase in the period to 39 percent.
Qatar’s QE Index slipped 1 percent, dropping the first time in five days on trading volumes about 30 percent below the 20-day average. Eighteen of 20 shares retreated. While Fitch Ratings on Thursday affirmed the credit rating of seven of the country’s lenders, Qatar National Bank was one of the top five contributors to the index drop. Qatar First Bank will sell shares on the bourse on April 27, a stock exchange statement said on Thursday.