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(ATTACHMENT-1) =DJ MIDEAST MORNING BRIEFING: Bargain Buying To Boost Saudi, UAE

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DUBAI (Zawya Dow Jones)--Saudi shares are likely to extend Tuesday's rebound after shaking off a 7.6% correction since the start of March, a trader said, adding that investors are likely to take advantage of cheap prices. The market closed up 1.5% to 9506.90 Tuesday.

Zamil Industrial Investment Co. is likely to see activity after its board recommended to pay SAR1.5 in cash dividends on April 20. Zamil closed up 2.9% to SAR78.75 Wednesday.

"The petrochemical sector will likely trade up as global markets are up and investor's fears of a world economic recession slowing the demand for oil-based products lessens," said Hisham Tuffaha, the division head of research at Bakheet Investment Group.

Index heavyweight Saudi Basic Industries Corp. rose 1.3% to SAR178 Tuesday.

Investor confidence in banks is likely to continue after positive news on U.S. financial institutions boosted global markets, said a portfolio fund manager at Samba Capital Asset Management.

Arab National Bank rose 5.2% to SAR61 Tuesday while index heavyweight Samba Financial Group gained 1.9% to SAR87.75.

U.A.E.: Dubai shares are expected to trade up, extending Tuesday's gains after a spate of bargain buying, a trader said.

Dubai shares closed up 1.3% to 5467.74 Tuesday with index heavyweight Dubai Islamic Bank ending up 5.2% to AED9.70. The stock has fallen 10% since the beginning of March. DIB affiliate, Deyaar gained 5.7% to AED2.41 Tuesday, after sliding 9.7% since the beginning of the month.

"There is bargain buying in the market after it fell to a near two-month low this week but volumes are low as investors are unsure of direction ahead of first quarter earnings," said an Abu Dhabi-based trader.

Arabtec is likely to see some activity after it said Tuesday it won a AED412 million contract from Shaikh Holdings. Arabtec rose 2.7% to AED11.45 Tuesday.

In Abu Dhabi, the market ended up 0.7% to 4605.62 Tuesday, led by heavyweight Etisalat, rising 3.8% to AED24.25. Etisalat said late Monday its shareholders approved to pay 35% cash dividends for the second half of 2007. Shareholders also approved to make a 1-for-5 bonus share issue.

U.A.E. minister of economy Sultan Bin Saeed Al Mansouri said at Etisalat's AGM that the regulatory authorities will study soon to allow foreigners to own the company's shares.

EGYPT: Orascom Hotels & Development, or OHD, is likely to trade higher after it said Tuesday its unaudited net profit for 2007 grew 36% to EGP401 million. OHD shrugged off earlier gains Tuesday, ending down 0.8% to EGP89.16. The market closed 1.5% higher to 11068 Tuesday.

Orascom Construction Industries is likely to extend its Tuesday rally ahead of a cash dividend payout Thursday. OCI topped gainers Tuesday, rising 5.5% to EGP383.11.

"The market should be making gains as the prices are attractive and fundamentals are sound," said Mohamed Ashmawy of Commercial International Brokerage.

Egyptian Company for Mobile Services, or Mobinil, is likely to see some activity after it said Tuesday it will distribute a cash dividend of EGP4.34 per share on April 16. Mobinil rose 7.7% to EGP204.70.

KUWAIT: Kuwait Projects Co., or Kipco, is likely to see activity after it said Tuesday it will likely post a profit of up to KWD110 million for 2008, mainly attributable to its core business. Kipco closed unchanged at KWD1.300.

Shares in the second-largest Gulf market closed down 0.4% to 14319.40 Tuesday, undermined by blue chips. Agility fell 4.7% to KWD1.220 and Zain slipped 3% to AED1.940. Banks added to losses.

"There is profit taking in the market after it tested the 14500 level for the first time ever on Sunday," said a Kuwait-based bank's trader.

Valuations are stretched for many heavyweights at current levels, he added.

QATAR: The Doha market fell 1.7% to 9511.52 at close with banks driving losses.

Doha bank topped losers, falling 9.8% to QAR74. Doha Bank's price was adjusted to account for the bonus shares that were listed Tuesday, said an analyst. The bourse said Monday that the lender's weightage on the index will be changed to reflect the additional shares.

"Investors also booked profit after getting the bonus shares into their accounts," the analyst adds.

BAHRAIN: The market closed down 0.3% to 2785.84 Tuesday, with hotel and tourism shares leading losers.

OMAN: Oman shares ended down 0.4% to 10372.08 Tuesday with services and industry shares driving losses.

NEWS FROM AROUND THE GULF: Vodafone Qatar, the Qatar unit of Vodafone Group PLC (VOD), the world's largest mobile phone operator in terms of sales, is preparing an initial public offering of its shares, a Vodafone spokesman said Tuesday.

Franco-Belgian utility Suez (SZEZY) said Tuesday Suez Energy International and Japanese consortium partner Mitsui (MITSY) have been awarded a contract to build and operate an electricity and desalination plant in Qatar. Total investment in the project is likely to be more than $3.7 billion.

Qatar-based Al Waab City said Tuesday it is raising a $1.3 billion multi-tranched loan to finance its $3.3 billion mixed-use real estate project, also called Al Waab City, a Doha-based development that integrates housing, retail, offices, health facilities, and a hotel.

FOREX: On Tuesday, the dollar gave back some of its recent gains as weak U.S. consumer confidence data put the spotlight back on a stagnant economy and the possibility of more interest-rate reductions.

Ashraf Laidi, chief foreign exchange strategist at CMC Markets in New York, said the data remind currency investors of "the growing stark realities weighing directly on consumers: record gasoline prices, tumbling home prices, falling home equity, reduced access to credit, falling equity prices and rising claims of unemployment."

The euro climbed above $1.56 after the consumer confidence report and remained around that level throughout the North American session.

Still, analysts noted that the euro's gains over the dollar Tuesday were rather mild, and it remained well below its all-time high of $1.5905, reached March 17.

Mark Meadows, currency analyst at Tempus Consulting in Washington, said he expects the euro to begin trading in ranges of $1.53 to $1.57, after some wild gyrations in recent weeks.

"We're likely to see a smaller trading range now, with equity markets calming down a bit and not having 400-point swings every day," Meadows said.

ENERGY: Oil prices rose Wednesday as the depreciation of the U.S. dollar drove investors to crude futures despite new economic worries and expectations that U.S. stockpiles were continuing to build.

"U.S. economic woes give mixed signals for oil ... all these poor economic data should affect demand in the U.S. negatively and the weaker supply demand fundamentals should pull down prices," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

But "the weak U.S. dollar continues to prop up oil prices due to financial investors engaging in this inflation play," Shum said.

Nymex May crude added 54 cents at US$101.76 a barrel and Brent rose 40 cents to $101.

"Even though crude is gaining strength right now, the technical trend is still weak and so for those traders who trade on technical trends, because of the fact that oil pricing has plunged by US$10 from record highs, there's really not a whole lot of technical support," he said.

"In the near term, pricing is likely to trade around the US$100 level. The last few days have showed there's strong support around this level."

Investors were also eyeing the release of a weekly report on U.S. fuel inventories later Wednesday. The report by the U.S. Energy Department's Energy Information Administration is expected to show crude stockpiles rose for the third straight week.

METALS: Spot gold is up 30 cents at $938.80 after having pierced resistance at $935/oz, setting up a possible run to $960. But Kitco analyst Jon Nadler says that "absent a swift, successful, and sustained breach of higher levels, the general tilt in the market remains negative for the time being."

-By Maria Abi-Habib, Dow Jones Newswires; +97 14 364 4962; maria.habib@dowjones.com

Copyright (c) 2008 Dow Jones & Company, Inc.

(END) Dow Jones Newswires

March 26, 2008 01:21 ET (05:21 GMT)