Gulf Shares Advance on Global Bailouts; Arabtec, Omantel Gain

By Haris Anwar

Nov. 30 (Bloomberg) -- Gulf shares gained, tracking the global markets, on speculation government bailouts will shore up the global economy and attract investors into the region.

Arabtec Holding Co., the construction company building the world’s tallest tower in Dubai, rose to the highest in almost three weeks after it offered one bonus share for each existing share. Emirates Telecommunications Corp., the United Arab Emirates’ biggest telephone company, advancing for a second day, while Oman Telecommunications Co. rose to the highest since Nov. 11.

The Dubai Financial Market General Index gained 1.9 percent to 1,964.66, advancing 8.3 percent in the past four trading sessions. The Abu Dhabi Securities Exchange General Index advanced 2 percent to 2,775.85, while the Kuwait Stock Exchange Index rose 1.7 percent.

“We’re seeing some shifts in sentiments globally,” said Chamel Fahmy, senior regional sales trader at Beltone Securities Brokerage in Dubai. “Our markets are following that trend. I think there is still 200 points upside in the Dubai market.”

The S&P 500 gained more than 12 percent in the past week, its best weekly performance since 1974, after China cut interest rates and the Federal Reserve committed $800 billion to help resuscitate lending markets, boosting speculation government action will pull the global economy out of recession.

Nakheel Effect

The Dubai index, which surged as much as 6.3 percent, pared gains after the state-owned developer Nakheel PJSC cut its workforce by 15 percent as the company scaled back some of its projects because of the global financial crisis. Nakheel is the developer of palm tree-shaped islands off the emirate’s coast. The company in October announced plans to construct a kilometer- high tower in Dubai.

Dubai is bracing for a slowdown in the property market as economic growth slumps, reducing demand for real estate. Emaar Properties PJSC, the Middle East’s largest real-estate developer, said Nov. 13 it’s reviewing recruitment policies as the global financial crisis squeezes credit facilities and slows the regional property market.

Oman’s Muscat Securities Market 30 Index rose 2.3 percent, while Qatar’s DSM 20 Index increased 6.1 percent. The Bahrain All Share Index added 1.2 percent. Saudi Arabia’s Tadawul All Share Index dropped 2.2 percent to 4,738.14.

Arabtec Gains

Arabtec surged 2 percent to 4.55 dirhams, its highest since Nov. 10. Arabtec’s board approved plans to increase the Dubai- based company’s capital to 1.2 billion dirhams ($326 million) from 598 million dirhams. Emirates Telecommunications, or Etisalat, rose 0.8 percent to 12.45 dirhams.

Oman Telecom, the biggest phone company in the Persian Gulf country, gained 3.2 percent to 1.731 rials after saying it was part of a group that qualified for the second stage of the mobile-phone license bid process in Iran.

The following stocks also rose or fell in the region. Stock symbols are in parentheses after company names.

Kuwait Projects Co. Holding K.S.C. (KPROJ KK), the country’s largest non-state-owned investment company, gained 6.4 percent to 670 fils after it repaid a 200 million-euro ($254 million) medium-term note due this month.

Qatar Telecom QSC (QTEL QD), the telecommunications firm that seeks to control PT Indosat, rose 3.3 percent to 127.1 riyals after the operator agreed to pay its original offer price for more shares in Indonesia’s second-largest telephone company.

Qatar International Islamic Bank (QIIK QD), the emirate’s second-largest bank complying with Muslim law, climbed 9.7 percent to 48.6 riyals after the bank said it may buy back 10 percent of its shares after a board meeting Dec. 14.

To contact the reporter on this story: Haris Anwar in Dubai on hanwar2@bloomberg.net.