Thursday, May 24, 2012


 
Saudi SE              7061.43               -0.59% 
Dubai FM              1480.10               -1.10% 
Abu Dhabi SM          2475.52               +0.18% 
Kuwait SE             6366.95               -0.22% 
Doha SM               8467.42               -0.37% 
Muscat SM             5721.27               -0.51% 
Bahrain SE            1137.65               -0.06% 
Cairo SE              4921.88               +1.19% 
Amman                 1917.01               +0.56% 
 
ICE Brent $/bbl        107.60               -1.47% 
Gold $/troy oz        1561.30               -1.49% 
Euro-USD                 1.26               +0.16% 
DJIA                 12496.15               -0.05%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Persian Gulf stock markets are seen trading with a negative bias Thursday amid rising uncertainty in Europe and after weak manufacturing data from China.

In the wider region, Egypt will remain in the focus. The stock market rose Wednesday after a mostly peaceful first day of voting in the first free presidential elections in the Arab country as it transitions from military-backed dictatorship to democratic civilian rule.

"Regardless of who wins, two outstanding issues remain from an economic perspective. First the new constitution defining the role of the new president has not yet been agreed. And second, the main candidates have failed to provide a clear direction over their economic policy," analysts at London-based Capital Economics said in a note.

Asian stocks edged lower Thursday after European leaders failed to produce a breakthrough to the region's economic crisis, while China manufacturing data for May pointed toward a deteriorating economic environment in Asia's largest economy.

HSBC's preliminary China purchasing managers index came out at 48.7, compared to 49.3 in April. A score below 50 indicates a contraction in manufacturing activity.

The euro fell to its lowest in two years overnight as a summit in Brussels highlighted differences between European leaders amid rising worries over a potential Greek exit from the euro zone.

Oil prices were slightly up Thursday, after settling at a fresh seven-month low the previous day, breaking below $90 a barrel as the latest U.S. weekly oil data showed stockpiles remaining at 22-year highs amid sluggish demand.

Nymex July crude futures were last up 40 cents at $90.30 a barrel Thursday.

U.A.E.: Dubai shares finished 1.1% lower at 1480.10 Wednesday; the market is still up some 9% this year.

Longer and medium term investors can enter the market at levels higher than 1530 and 1560, respectively, says one technical analyst.

Abu Dhabi's market was up 0.2% at 2475.52 Wednesday; bank and energy stocks supported.

SAUDI ARABIA: The region's biggest market is closed for the weekend. The benchmark Tadawul index fell 0.6% to 7061.43 Wednesday.

KUWAIT: The benchmark stocks index slipped 0.2% to 6366.95 Wednesday; the market is still up some 10% for the year.

QATAR: Doha's market closed 0.4% lower at 8467.42 Wednesday; bank and industry stocks weighed.

BAHRAIN: The main gauge stocks ended -0.1% at 1137.65 Wednesday; the service sector dragged.

OMAN: Muscat's market finished down 0.5% at 5721.27 Wednesday; undermined by bank stocks.

EGYPT: The benchmark EGX 30 Index rose 1.2% to 4921.88 at the close as millions of Egyptians voted Wednesday for their next president.

Investors remain cautious as the country votes, noted a Dubai-based trader at an international bank. "Let's just hope there is no violence and it actually goes smoothly," he added.

In terms of stocks, heavyweight Orascom Construction ends +8.1% at EGP278.95.

NEWS FROM AROUND THE GULF: U.K. defense contractor BAE Systems Wednesday secured a $3-billion contract to supply Hawk trainer jets to Saudi Arabia's air force, the latest military equipment deal under a Saudi-British defense pact.

Egypt's trade deficit widened 9.8% to EGP17.18 billion in the year to January as the prices of commodities such as petroleum products, iron, steel and crude oil rose, data from the country's official statistics agency showed Wednesday.

Tunisia, looking to raise funds in the international markets to help bring its economy back on track after it kick-started the Arab Spring movement two years ago, plans to raise up to $350 million in a bond issue that will be guaranteed by the U.S Treasury Department, a top government official said Wednesday.

Dubai-based Friendi Group is working towards an initial public offering within the next couple of years, while the telecoms services company also aims to set up operations in Saudi Arabia, Egypt and Lebanon as a mobile virtual telecom operator, or MVNO, the company's chief executive said.

-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com; Twitter: @ZDJnews

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

24-05-12 0523GMT