Sukuk lift Qatar and Dubai

Markets Wrap: Markets in Qatar and Dubai rallied on strong demand for Islamic bonds and as investors positioned themselves ahead of the release of corporate earnings for the second quarter.

Markets in Qatar and Dubai rallied on strong demand for Islamic bonds and as investors positioned themselves ahead of the release of corporate earnings for the second quarter.

A US$4 billion sukuk sale by Qatar’s government – reportedly more than six times oversubscribed – was likely to lead to lower borrowing costs for Qatari companies, said Debashis Dey, a partner at the international law firm Clifford Chance.

“Corporate debt is typically priced at some elevation above government debt,” he said. “They’ve set a floor … for where their debt is priced.”

Qatar’s market rose, with the QE Index gaining 0.5 per cent to 8,285.03.

Dubai’s markets were led higher as Emaar Properties completed pricing of a $500 million sukuk. The stock rallied 1.9 per cent to Dh3.10, leading the emirate’s benchmark upwards in the last few hours of the session.

The Dubai Financial Market General Index climbed 0.7 per cent to 1,491.08, while the Abu Dhabi Securities Exchange General Index was flat at 2,466.54.

Tamweel rebounded 0.8 per cent to Dh1.25, having declined on Wednesday after reporting a 33 per cent dip in profit for the second quarter. Arabtec and Tabreed also rose.

Property stocks were the biggest gainers on the capital’s market, with Aldar up 1.8 per cent to Dh1.11 and Sorouh Real Estate up 2 per cent at Dh1.02.

Elsewhere in the Arabian Gulf, market activity was muted ahead of the start of Ramadan next week, with Kuwait and Oman down slightly and Bahrain’s markets registering tentative gains. The Saudi Tadawul was closed for the weekend.

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