Abu Dhabi shares gained the most in three months on investor speculation declines yesterday triggered by the unrest in Egypt were overdone given prospects for earnings growth. Saudi Arabian stock retreated.
Emirates Telecommunications Corp. rose the most since October after its Egyptian unit resumed services and as an offer for Zain Saudi Arabia may help it buy a controlling stake in Kuwait’s Zain. National Bank of Ras Al-Khaimah PSC surged to the highest since 2005 as full-year profit rose 38 percent. The ADX General Index increased 1 percent, the most since Oct. 19, to 2,586.75 at the 2 p.m. close in Abu Dhabi. The measure slumped the most since November 2009 yesterday. Saudi Arabia’s Tadawul All Share Index dropped 1.1 percent at 2:19 p.m. in Riyadh.
“Markets in the Gulf Cooperation Council are seeing a strong rebound as smart money is picking up names that are unaffected by the geo-politics of North Africa,” said Omair Ansari, equity strategist at Dubai-based Gulfmena Alternative Investments. “Earnings for the majority of the companies in the GCC are insulated to within the region, thus yesterday’s selloff was unjustified.”
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