Dubai's index fell 3.6 percent, Kuwait and Qatar lost 1.9 and 1.6 percent respectively and Bahrain, Abu Dhabi and Oman also retreated. Egypt's measure fell 1.1 percent, its first decline in four trading days.

Saudi Arabia's benchmark bounced back from Saturday's two-month closing low, which may indicate Sunday's broad regional decline will prove temporary. The Tadawul All-Share Index (TASI) climbed 0.5 percent to 5,497 points.

Gains came in from almost all the sectors ranging from 0.03 percent by the Banks & Financial Services to 2.95 percent by the Hotel & Tourism sector. The losses were minor and only seen in Energy & Utilities and Insurance sector with 0.45 percent and 0.46 percent respectively. The overall market breadth remained strong with 82 advancers as against 33 decliners giving an AD ratio of 2.48, the Jeddah-based Financial Transaction House (FTH) said.

"Even with a positive close, the market liquidity, however, remained low at SR3.8 billion on expectations of quarterly corporate earnings results to decide the future patterns for TASI, the FTH said in its daily market commentary. "For the rest of the month, markets will be driven by second-quarter results and global investor sentiment," said Shahid Hameed, Global Investment House head of asset management for the Gulf region.

Emaar Properties weighed on Dubai's index. The company's share price plunged 7.1 percent a day after announcing the closure of its Algerian office because of a lack of progress in what was slated to be $20 billion worth of projects. "There are a lot of questions surrounding Emaar and the company hasn't provided enough answers," said Wadah Al-Taha, a Dubai-based financial analyst. "There's no proper explanation for closing its Algeria office -- why and why now?"

The Dubai index fell 3.6 percent to 1,756 points. The Abu Dhabi index fell 1.3 percent to 2,637 points.

Qatar's index fell to a two-month low as trading volumes slumped to their lowest level since mid-February.

The index dropped 1.6 percent to 6,370 points, falling for the fourth session in six. "People are waiting for second-quarter results, with Qatar National Bank announcing their earnings this week," said Osama Rayyan, chief dealer at Dlala Brokerage & Investment Holding.

"QNB will have a big impact on the market and will set the trend for the banking sector, which accounts for about 60 percent of the index weighting."

Activity on other markets is also waning, with Saudi Arabia's volume the lowest since late March, while Dubai and Abu Dhabi trading slipped to seven-week lows.

Banks across the region struggled as investors fret over potential exposures to Saudi Arabia's Saad Group and Ahmad Hamad Algosaibi Group & Bros, which are restructuring billions of dollars of debts.

Meanwhile, Japanese giant Nomura said on Sunday it had launched investment banking operations in Saudi Arabia, becoming the first Asian securities firm to break into the lucrative, rapidly growing market.

The move came after the company was authorized by Saudi Arabia's Capital Market Authority (CMA) to offer corporate finance, capital market and wealth management services for local clients and also to sell overseas securities locally as an agent.

"A strong local presence is a critical part of Nomura's regional strategy," Nomura's Chief Executive for Middle East and Africa Philip Lynch said in a statement. "As the first Asian securities firm in Saudi Arabia, Nomura is especially well placed to bridge and facilitate the growing commercial interests between the Gulf and the Far East and strengthen emerging trading relationships," he said.

Saudi Arabia accounts for around half of the aggregate economy of the six-member Gulf Cooperation Council, he said.

Takuya Furuya, chairman of Nomura Saudi Arabia, said: "This is an exciting step in the development of Nomura's business across the region as we look to extend our capability to this important economy. We look forward to introducing our distinctive brand and business model in the Kingdom and building out our team on the ground in Riyadh to support emerging opportunities as markets recover."

With a presence in the region since 1974, Nomura has long-standing relationships with Saudi government bodies, financial institutions, corporates and private investors.

Nomura already operates in Dubai and Bahrain, and was recently licensed to provide corporate finance and capital markets services in Qatar.

© Arab News 2009

 

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