Gulf rebounds as Turkish lira, emerging markets stabilise for now

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RIYADH (Reuters) – Gulf stock prices rebounded modestly early on Tuesday from several days of falls, as investors were encouraged to buy back cautiously with the Turkish lira and other emerging markets regaining some stability for now.

Dubai’s stock index gained 0.6 percent as its top bank, Emirates NBD , added 1.2 percent. The bank, which in May agreed to buy Turkey’s Denizbank in a $3.2 billion deal, had tumbled 4.6 percent on Monday because of its Turkey exposure.

Loss-making builder Drake & Scull jumped 9.8 percent from a record low and was the market’s most heavily traded stock; it appointed Yousef Al Mulla as group chief executive, replacing Fadi Feghali who had taken the post only in April, and said it was devising a fresh restructuring plan that would be announced later.

Emaar Properties gained 1 percent after reporting a 16 percent year-on-year rise in second-quarter net profit, on a 55 percent leap in revenues. Its affiliate Emaar Development added 2.1 percent after disclosing a 73 percent surge in quarterly profit.

Saudi Arabia’s stock index climbed 0.8 percent in a broad-based rebound, with gainers outnumbering losers by 129 to 123. The biggest bank, National Commercial Bank <1180.SE>, surged 2.9 percent; Arqaam Capital estimates NCB’s exposure to Turkey at 8 percent of its assets and 12 percent of its loans.

Qatar’s biggest bank, Qatar National Bank , rebounded 0.9 percent after falling sharply for two days. It has a Turkish subsidiary, QNB Finansbank.

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In eye of the storm, Turkey's new finance chief faces credibility test - Middle East AffairsAugust 16, 2018 - 3:35 pm

[…] The lira has lost nearly 40 percent against the dollar this year, tumbling to a low of 7.24 on Monday, fuelled in part by Erdogan’s relentless calls for lower interest rates despite soaring inflation. The slump has led to fears of contagion across emerging markets. […]

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