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Jun 14 2012

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MIDEAST MORNING BRIEFING: Gulf Mkts Seen Cautious; OPEC In Focus

Saudi SE             6744.53                +0.25% 

Dubai FM             1477.86                +0.62% 

Abu Dhabi SM         2448.22                +0.03% 

Kuwait SE            5915.96                -1.67% 

Doha SM              8261.09                -0.24% 

Muscat SM            5710.63                -0.06% 

Bahrain SE           1116.99                -1.55% 

Cairo SE             4421.38                -0.62% 

Amman                1877.56                -0.03% 

 

ICE Brent $/bbl        97.68                +0.57% 

Gold $/troy oz       1622.50                -0.06% 

Euro-USD                1.26                +0.16% 

DJIA                12496.38                -0.62% 

 

   By Brinda Darasha 

   Of ZAWYA DOW JONES 

Investors are keenly watching out an OPEC meeting in Vienna later in the day, after members of the cartel Wednesday seemed to favor leaving its output ceiling unchanged amid supply uncertainties and deep rifts within the group.

On the global equities front, Asian markets fell early Thursday and European bourses are seen opening lower as new concerns about the ability of European countries to borrow added to lingering concerns about Greece, where depositors are withdrawing cash ahead of the election this weekend.

Underlining the impact of deleveraging in Europe and elsewhere on credit conditions in the Gulf, London-based Capital Economics said in a note that banks in the region are in a good position to weather the storm from the euro-zone crisis, but credit growth will probably slow, and this "should contribute to growth slowing from around 7% in 2011 to less than 4% in 2012."

U.A.E.: Dubai's market Wednesday ended +0.6% at 1477.86. The index notched a small rebound on some bargain buying after it closed nearly 1% lower in the previous session.

Property stocks had a gainful day on the DFM. Emaar Properties rose 1.4% at AED2.89 while Deyaar added 1.3% at AED0.31.

Abu Dhabi shares closed flat at 2448.22 Wednesday. Banks gained while real estate shares dragged.

U.A.E. markets are closed for an Islamic holiday Sunday, June 17. Trading will resume Monday, said bourse authorities.

SAUDI ARABIA: The Saudi market is closed for the weekend. The benchmark Tadawul Index finished +0.3% at 6744.53 Wednesday.

KUWAIT: The Kuwait stock exchange ended -1.7% at 5915.96 Wednesday. The index is among the better performers in the region and has a price-earnings ratio of 15.18, the highest among its GCC peers.

Insurance and bank stocks weighed in Wednesday's trading.

National Ranges Co., or Mayadeen, was -9% at KWD0.20 after a media report Wednesday said the company will restructure a debt of KWD22.16 million with Commercial Bank of Kuwait and has settled all legal disputes with it.

The bourse said it will be closed Sunday, June 17, for the Islamic holiday of Al Israa Wal Miraaj.

QATAR: Qatar's QE Index closed -0.2% at 8261.09 Wednesday.

Qatar National Bank shares end -0.2% at QAR131.10, extending losses from Tuesday. Qatar's largest lender is one of a number of banks interested in buying BNP Paribas's retail banking franchise there, people familiar with the matter told Zawya Dow Jones.

BAHRAIN: The main gauge of stocks closed Wednesday -1.6% at 1116.99. Bank shares slumped.

OMAN: Muscat's market closed -0.1% at 5710.63 Wednesday, weighed by industry stocks.

The bourse said it will be closed Sunday, June 17, for the Islamic holiday of Al Israa Wal Miraaj.

EGYPT: The Egyptian index of shares EGX 30 closed -0.6% at 4421.38 Wednesday.

The stock market reacts nervously before the Supreme Constitutional Court which begins hearings Thursday, two days before the presidential vote's final round, to determine the constitutionality of a law governing parliamentary elections.

It will also consider a statute that would exclude a presidential finalist over his connection to the ousted regime.

The decisions pending at Egypt's top court hold the potential to force a repeat of the country's parliamentary race, its presidential election, or both.

NEWS FROM AROUND THE GULF: Dubai's Jebel Ali Free Zone, known as Jafza, will sign a $1.2 billion loan deal with banks this week that will help repay an Islamic bond due this year, the chairman of the free zone's parent company said Wednesday.

The free zone operator has issued a $650 million, seven-year Islamic bond, or sukuk, after receiving strong demand from investors, according to a banker aware of the transaction.

Saudi Arabia's non-oil exports rose 27% on year to SAR16.2 billion in April, data from the Central Department of Statistics and Information, or CDSI, showed.

Annual consumer price inflation in Qatar in May was steady at 1.1%, compared with the month earlier, official data showed Wednesday.

Royal Bank of Scotland (RBS.LN) is hoping to cash in on a forecast surge in Middle East project bond issuance, as governments and corporates become increasingly more creative in financing large infrastructure works, an executive at the U.K.-based lender said.

Sovereign wealth fund Kuwait Investment Corp. and Malaysia's largest pension fund have agreed to become cornerstone investors in the planned $2 billion initial public offering of IHH Healthcare Bhd., which owns hospitals in Malaysia, Singapore and Turkey, a person familiar with the situation said Thursday, an indication that the IPO is on track given strong commitments from select investors.

-By Brinda Darasha, Dow Jones Newswires; +9714 446-1688; brinda.darasha@dowjones.com; Twitter: @ZDJnews

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

14-06-12 0535GMT

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