Tuesday, Jun 18, 2013


 
Saudi SE          7463.37        +1.81% 
Dubai FM          2382.81        +1.59% 
Abu Dhabi SM      3643.24        +0.35% 
Kuwait SE         8080.55        +1.58% 
Doha SM           9429.70        +0.06% 
Muscat SM         6509.94        +0.40% 
Bahrain SE        1205.59        +0.57% 
Cairo SE          4658.53        +1.19% 
Amman             2019.34        +0.01% 
 
ICE Brent $/bbl    105.57        +0.09% 
Gold $/troy oz    1382.40        -0.05% 
Euro-USD             1.33        -0.07% 
DJIA             15179.85        +0.73%

By Brinda Darasha

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf region are likely to trade cautiously Tuesday and take some profits off the table as skittish investors, fearing a tapering of quantitative easing, await greater clarity on U.S. monetary policy.

The U.S. Federal Open Market Committee completes its policy meeting on Wednesday and markets are keenly waiting to see whether the Fed will start to pull back its bond buying program amid increasing signs of a recovery in the U.S. economy.

Asian stocks were mostly lower on Tuesday in cautious trade. However on Monday, the Dow Jones Industrial Average gained 109.67 points, or 0.7%, to 15179.85 as the blue-chip index rebounded from a 106 point fall Friday after sluggish economic data.

In the region, investors remain concerned that a U.S. intervention in Syria will lead to an escalation of tensions in the region, analysts say.

The regional markets bounced back on Monday after some profit booking in the previous session following the U.A.E. and Qatar winning a MSCI Inc. promotion to emerging markets status last week.

Al Masah Capital's Akber R. Naqvi said this week will either see "investors capitalizing even more on the good fortune or sensible profit taking allowing for consolidation and fresh entry points for new players."

Light, sweet crude for July delivery last traded up 5 cents at $97.82 a barrel on the New York Mercantile Exchange.

U.A.E.: Dubai's market Monday ended up 1.6% to 2382.81, bouncing back from a 2.3% fall Sunday.

Arabtec Holding shares closed up 3.9% at AED2.12. The company said Monday it is part of a joint venture that has been awarded a contract worth about AED4 billion to construct a mixed-use development in Kazakhstan, the U.A.E.-based firm's latest project win outside its domestic market.

Drake & Scull International's chief executive said he expects to grow revenues by 25% to 30% this year, compared with 2012, as it continues to pick up new work in countries like Saudi Arabia and Qatar. Its shares closed up 1.5% at AED1.01 Monday.

Abu Dhabi shares closed +0.4% at 3643.24 Monday as financial and real estate shares advanced.

SAUDI ARABIA: Saudi's Tadawul Index closed Monday 1.8% higher at 7463.37, extending its 0.5% gains from the previous session, after falling more than 4% Saturday amid concerns of escalating geopolitical tensions. Bank and petchem stocks lead the gains on Monday.

Saudi Telecom Co. shares closed up 1.3% at SAR39.80. HSBC raised its target price for STC to SAR53.4 from SAR51 Monday. It said poor performance from non-core assets masked a strong valuation story.

Sadara, the $19.3 billion petrochemical joint venture between state oil giant Saudi Aramco and Dow Chemical Co., said Monday it has signed loan facilities worth SAE39.375 billion to provide additional financing for its giant chemical plant in Jubail on the Gulf coast.

Also on Monday, Sadara Chemical Co. said it has reached an agreement with some local companies for the supply of butanol to its chemicals project in Jubail.

KUWAIT: The Kuwait stock exchange ended +1.6% at 8080.55 Monday.

EFG Hermes said Monday that the Kuwaiti constitutional court's decision to ratify the electoral reform decree and scrap December's parliamentary election was one of the most positive of possible outcomes from an economic standpoint.

In terms of stocks, Jazeera Airways Monday closed up 2% at KWD0.50. The company said on Monday that it has concluded a $90 million financing deal arranged by National Bank of Kuwait and Germany's DVB Bank SE as it targets three Airbus A320 aircraft purchases over the next two years.

QATAR: Qatar's QE Index closed +0.1% at 9429.70 Monday. Property shares advanced.

BAHRAIN: The main gauge of stocks closed Monday +0.6% at 1205.59.

OMAN: Muscat's market closed +0.4% at 6509.94.

EGYPT: The Egyptian index of shares EGX 30 closed 1.2% higher at 4658.53 Monday underpinned by a surge in telco stocks.

In terms of stock, Telecom Egypt gained 6.7% to EGP11.80 while Orascom Telecom Holding rose 6% to EGP4.

NEWS FROM AROUND THE GULF: Qatar Holding, the investment arm of the Gulf state's sovereign fund, on Monday said it sold its 10% stake in Porsche Automobil Holding SE to the German company's family shareholders, restoring full ownership of all voting rights to them.

Abu Dhabi's Etihad Airways has entered into discussions with the Serbian government about a possible equity investment in the country's national carrier, Jat Airways, according the Middle Eastern carrier.

Chevron Corp. has completed a transaction to acquire another oil exploration deal in Iraq's semiautonomous Kurdistan region, the U.S. company said in a statement Monday.

Write to Brinda Darasha at brinda.darasha@dowjones.com

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

18-06-13 0514GMT