Stock News: Stronger Oil Supports Saudi; Hollywood Deal Lifts Dubai

A midday turnaround of oil prices and positive corporate news helped Saudi Arabia’s bourse edge up on Wednesday, while fresh plans for amusement park attractions boosted Dubai. Other Gulf markets were mixed.

Brent crude oil futures reversed early losses to rally to $55.50 barrel as talks over Iran’s nuclear programme dragged on, curbing expectations for an immediate deal that would allow more Iranian crude onto the market.

The main Saudi stock index edged up 0.4 per cent as heavyweight Saudi Basic Industries, the Kingdom’s top petrochemicals producer, rose one per cent to SAR80.75, having found support just above its March low of SAR79.25.

National Petrochemical Co (Petrochem) surged 7.1 per cent after announcing that its subsidiary Saudi Polymers Co had completed all of its obligations under financing agreements with its local and international lenders and would no longer need third-party financial guarantess.

Saudi Arabian Mining Co (Ma’aden) rose 1.7 per cent after restarting the ammonia plant which it had to shut down last week because of a cooling facility fault.

Arabian Cement Co climbed 1.5 per cent after announcing it had signed a deal for the construction of a new line at its plant in Rabigh.

The banking sector also rebounded after a sell-off in the two previous sessions and rose 0.6 per cent.

UAE, QATAR

Dubai’s index edged up 0.5 per cent as Dubai Parks and Resorts (DPR) surged 8.6 per cent to Dhs0.93, its highest close since the stock listed in December.

The firm, which is building a $2.9 billion amusement park complex, said on Tuesday it was partnering with Hollywood studio Lionsgate Entertainment to build attractions based on its franchises including the Hunger Games movie series.

DPR does not expect to turn profitable until 2018 and still trades seven per cent below the price of its initial public offer, which took place in November, but investors seized on the Humger Games news to bid the stock up.

Most other stocks in the emirate also rose, but trading volume shrank by a quarter, indicating this week’s rally may be running out of steam.

Abu Dhabi’s bourse rose 0.6 per cent on the back of Abu Dhabi Commercial Bank and Union National Bank , which jumped 2.9 and 3.5 per cent respectively.

But Abu Dhabi National Energy Co, also known as TAQA , tumbled 8.8 per cent after posting a net loss of Dhs3.01 billion ($820 million) for 2014 compared with a loss of Dhs2.52 billion in 2013. TAQA also said it would not pay dividends for 2014 and would cut its capital expenditures this year.

Qatar’s market fell 1.5 per cent, giving up some of the gains made in the last few days. Trading volume more than halved.

Egypt’s bourse edged down 0.4 per cent in another broad decline. Local food maker Edita will resume trading on Thursday after a heavily oversubscribed public offer, and investors may have sold stocks to free up some cash for it.