MIDEAST STOCKS-Qatar's GIS lifts market to new record

MIDEAST STOCKS-Qatar's GIS lifts market to new record
    DUBAI, Sept 9 (Reuters) - Qatar's Gulf International Services (GIS) lifted the Doha bourse to a record high on Tuesday after its unit signed contracts worth 5.2 billion riyals ($1.4 billion) to supply drilling rig services to state energy giant Qatar Petroleum.

    The stock jumped 4.7 percent to an all-time closing high of 128.30 riyals and was the main support for Qatar's benchmark , which added 0.6 percent and closed above 14,000 points for the first time.

    Gulf Drilling International, a subsidiary of GIS, will provide two new offshore rigs and two new land rigs, and extend four other contracts, Qatar Petroleum said in a statement after trading closed on Monday.

    The stock had already doubled in price this year, making it one of the best performers in Qatar, and GIS said in April it expected its net profit to jump at least 33 percent to above 900 million riyals this year. Qatar Petroleum said the rig contracts had been previously announced, but local retail investors were still energised by the announcement.

    One risk factor for Qatar is FIFA's investigation into its earlier decision to award the 2022 soccer World Cup to Qatar following allegations of graft, which Doha denies. Fund managers think Qatar remains very unlikely to lose the hosting rights, but the issue could cause concern in the market.

    FIFA ethics committee investigator Michael Garcia has completed his probe into the bidding process and handed in a 350-page report which the ethics committee's adjudicatory chamber, headed by German judge Hans-Joachim Eckert, will now use to decide whether any wrongdoing was committed, soccer's governing body said last Friday. FIFA said it could not comment on when Eckert might reach his decision.

    Separately, FIFA said on Monday it was considering staging the Cup in January-February or November-December as alternatives to June-July 2022, because of widespread concern over the health of the players and supporters if the games are played in the searing summer heat.


    Dubai's bourse slipped 0.2 percent as top developer Emaar Properties fell 1.8 percent. But Drake and Scull rose 1.5 percent after announcing it had won a 110 million dirham ($30 million) deal to build a district cooling plant in Qatar.

    Another Dubai firm, property developer Deyaar, added 0.8 percent after saying on Tuesday it had sold out residential units in the first tower of its new Montrose project and would start sales for the second one later this month.

    Abu Dhabi's index edged down 0.4 percent after failing to break through the 5,200 point mark. Blue chips First Gulf Bank and Etisalat fell 1.1 and 0.4 percent respectively.

    Egypt's benchmark continued to retreat from the six-year closing high it hit on Sunday and slid 1.1 percent. The Cairo index had risen 2.9 percent in the first week of September.

    "Its a normal pull-back after decent gains that the market has seen earlier this month, a minor correction that everybody was waiting for," said Mohamed Radwan, director of international sales at Pharos Securities in Cairo.

    Saudi Arabia's bourse was nearly flat as key petrochemical and banking stocks showed a mixed performance.



    * The index rose 0.6 percent to 14,047 points.


    * The index slipped 0.2 percent to 5,083 points.


    * The index edged down 0.4 percent to 5,168 points.


    * The index fell 1.1 percent to 9,600 points.


    * The index edged up 0.05 percent to 11,149 points.


    * The index added 0.1 percent to 7,474 points.


    * The index rose 0.3 percent to 7,515 points.

    Wael Elyamani
    @Posted by
    writer and blogger, founder of CTV Egypt News .

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