Thursday, May 17, 2012


 
Saudi SE             7099.90                -0.06% 
Dubai FM             1466.08                -1.36% 
Abu Dhabi SM         2467.21                -0.25% 
Kuwait SE            6437.72                -0.06% 
Doha SM              8467.76                -0.28% 
Muscat SM            5643.61                +1.01% 
Bahrain SE           1156.31                +0.04% 
Cairo SE             4955.31                -0.99% 
Amman                1912.51                -1.84% 
 
ICE Brent $/bbl       109.50                +0.10% 
Gold $/troy oz       1547.40                +0.30% 
Euro-USD                1.27                +0.16% 
DJIA                12598.55                -0.26%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Heightened concerns about the likelihood of Greece exiting the euro zone and the impact that could have on Europe is likely to keep stocks in the Persian Gulf region in a tight range Thursday.

Greece named a caretaker government to take it to next month's election on Wednesday, but investors remain anxious about the possibility that political parties who oppose austerity measures might gain power in Greece, a move that would put at risk further E.U. bailout funds, increasing the risk of default and exit from the single currency.

Officials from Germany and European Union authorities reiterated Wednesday that Greece needs wrenching economic overhauls to stay inside the common currency.

"The failure of Greece to agree on a convincing government opens the door to a prolonged period of increased political uncertainty in southern Europe," said Mark McFarland, an emerging markets strategist at Emirates NBD Private Banking in Dubai. "It hardly needs stating that the world economy is now two years into a European debt crisis and it doesn't appear to be anyone in European political circles with a clear plan."

On Wall Street overnight, the Dow Jones Industrial Average fell for a fourth consecutive day as confusion over Greece's political future extended the recent stock slide. The blue-chip Dow lost 33.45 points, or 0.26%, to 12598.55, to finish at the day's lows. The slide, which eroded an early gain of 91 points, handed the index its 10th decline in the past 11 sessions. Since the beginning of May, the Dow has lost 4.7%, and now sits at a four-month low.

Asian stock markets were mixed early Thursday after Wednesday's heavy selling, with investors digesting Japanese data which showed that the economy grew faster than forecast in the past quarter.

The euro currency was last trading up 0.2% at $1.2745, while front month crude oil futures were 0.4% higher at $93.20 a barrel.

U.A.E.: Dubai's market closed 1.4% lower at 1466.08 Wednesday, while in Abu Dhabi, the benchmark index there finished down 0.3% at 2467.21.

Dubai Islamic Bank shares fell 2.1% to AED1.89. People familiar with the matter told Zawya Dow Jones earlier this week that DIB plans to meet fixed-income investors starting this week and may issue a U.S. dollar, benchmark-sized Islamic bond, or sukuk, depending on market conditions.

Elsewhere, Emirates NBD lost 1.8% to AED2.74 and heavyweight Emaar Properties tumbled 1.7% to AED2.89.

Shares of Arabtec edged 1% lower to AED2.89. MSCI Inc. said Wednesday it has added several Persian Gulf stocks including U.A.E.-based Arabtec to its frontier markets gauge in its semi-annual review for the compiler's equity indices.

In Abu Dhabi, property companies propped up the losers list with Aldar Properties losing 3% to AED0.97, while Sorouh Real Estate also fell 3% to AED0.95.

SAUDI ARABIA: The benchmark Tadawul Index is closed for the weekend. The main gauge ended 0.1% down at 7099.90 Wednesday.

KUWAIT: The market finished 0.1% lower at 6437.72 Wednesday.

Shares of Kuwait-based Agility fell 1.2% to KWD0.405. The logistics services provider said Wednesday that net profit fell 8.1% to 7.1 million Kuwaiti dinars ($25.35 million) in the first quarter of 2012 from KWD7.7 million a year earlier.

Kuwait Real Estate Holding Co., or Al Aqaria, said it has received the approval of the Capital Markets Authority to restructure its capital and acquire the remaining stake in its local affiliate, Al Fanar Investment Co.. Its shares closed at KWD0.056.

QATAR: Doha's market closed Wednesday down 0.3% at 8467.76.

In terms of stocks, Commercial bank of Qatar fell 2% to QAR70.10, while Industries Qatar lost 1.2% to QAR137.80.

BAHRAIN: The main gauge of stocks closed flat at 1156.31.

OMAN: Muscat's market ended 1% higher at 5643.61 Wednesday.

Oman Cement Co. jumped 2% to OMR0.66, while Oman International Bank rose 2.7% to OMR0.23. Index compiler MSCI said Wednesday it has added both to its Frontier Markets Index.

EGYPT: The market closed 1% lower at 4955.31 Wednesday.

Investors continue to fret over the outcome of next week's election and the country's still precarious financial situation. Some analysts argue that despite an increase in foreign currency reserves in April, external funding from the International Monetary Fund is still needed if Egypt is to avoid a full-blown balance of payments crisis.

In terms of stocks, TMG Group slipped 3% to EGP4.20. The company on Tuesday said net profit in the first quarter rose 2.5% as sales rebounded after a tough last year due to political upheaval in the country.

Elsewhere, Orascom Telecom fell 1.8% to EGP3.25 and Juhayna Food Industries shed 0.9% to EGP4.36.

NEWS FROM AROUND THE GULF: The number of tourists coming to Egypt jumped 73.2% to 927,000 in March 2012, compared to 535,000 in the same month a year earlier as the impact of the country's uprising last year began to fade, data from the government's official statistics agency showed Wednesday.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

17-05-12 0445GMT