Tuesday 19 January 2021

MIDEAST STOCKS-Telecom stocks power #UAE gains; #Saudi declines | Nasdaq

MIDEAST STOCKS-Telecom stocks power UAE gains; Saudi declines | Nasdaq

Markets in the United Arab Emirates (UAE) finished stronger on Tuesday, powered by the country's telecoms firms, which surged on the prospect non-UAE nationals' shareholdings could rise.

The Abu Dhabi benchmark .ADI firmed for a third straight session, ending 3.1% higher, after finishing the previous session up about 4%.

The index was boosted by a roughly 15% jump in Emirates Telecommunications (Etisalat) ETISALAT.AD, the only telecom-focused stock in the benchmark.

Etisalat saw its best day in nearly six years as the company called a board meeting for Wednesday to discuss increasing the foreign ownership limit in the firm.

Dubai's main share index .DFMGI gained 1%, with Emirates Integrated Telecommunications DU.DU jumping 14.6% for the stock's best session since December 2014.

Emirates Integrated Telecommunications, the sole communication services stock in the benchmark, has also called a board meeting for Wednesday to discuss raising the ownership of foreign investors.

Abu Dhabi, the capital of the UAE, changed its company laws late last year to allow more foreign investment as it seeks to boost private sector activity.

Meanwhile, Saudi Arabia's benchmark index .TASI ended 0.3% lower.

Saudi Telecom 7010.SE was the worst performer in the benchmark, falling 2.6%, while index heavyweight Al Rajhi Bank 1120.SE declined 0.4%.

The Saudi benchmark has now dropped in three of the last four sessions.

Elsewhere, Qatar's main index .QSI lost 0.9%, dragged down mainly by a 3.7% decline in Industries Qatar IQCD.QA.

Financials stocks also drove the losses in the Qatari index, with Masraf Al Rayan MARK.QA and Qatar International Islamic Bank QIIB.QA shedding 1.3% and about 2%, respectively.

Separately, Qatar Investment Authority is generating strong returns on a multibillion-dollar bet it made on distressed debt and highly-rated bonds at the start of the COVID-19 crisis, two sources familiar with its move told Reuters.

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