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Jul 17 2012

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MIDEAST MORNING BRIEFING: Gulf Mkts Seen Mixed; Eyes on Bernanke Testimony

Saudi SE               6641.30              -0.32% 

Dubai FM               1516.53              +0.93% 

Abu Dhabi SM           2456.89              -0.16% 

Kuwait SE              5860.38              +0.09% 

Doha SM                8295.03              +0.14% 

Muscat SM              5498.51              +0.56% 

Bahrain SE             1115.14              +0.23% 

Cairo SE               4740.53              +0.46% 

Amman                  1886.13              +0.07% 

 

ICE Brent $/bbl         103.66              +0.28% 

Gold $/troy oz         1594.50              -0.24% 

Euro-USD                  1.23              +0.24% 

DJIA                  12727.21              -0.39% 

 

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Persian Gulf stock markets are seen rangebound Tuesday as investors remain cautious ahead of Federal Reserve Chairman Ben Bernanke's testimony to the U.S. Congress later in the day.

The focus is on Bernanke's Congressional testimony for any clues about quantitative easing, analysts at Barclays say.

In the region, second quarter company earnings will continue to drive volumes, traders say.

U.A.E.: Dubai's market finished 0.9% higher at 1516.53 Monday; led by property stocks.

Bellwether Emaar rose 2.5% to AED3.23 Monday, after adding 3.6% in the previous two sessions.

The recent rally in Emaar stock is mainly due to an influx of foreign investors keen to get shares that they feel are currently undervalued, says The National Investor.

"Many investors are optimistic on the current structure of Emaar's revenues. The diversification into recurring income i.e. hospitality and malls businesses have improved the outlook/profile of the company," the analyst at TNI said.

He added: "From a valuation perspective, Emaar is trading around 35% discount to its book value. In addition, many investors are expecting Emaar to beat their earnings' expectations, so they are buying into the name before the second quarter's announcement."

Arabtec Holding rose 2.8% to AED2.94. Aabar Investments is unlikely to add to its declared 21.57% shareholding in Arabtec Holding , having secured effective control of the Dubai-based construction firm with the board changes that followed its controversial purchase of a minority stake, according to analysts.

Abu Dhabi's market was down -0.2% at 2456.89 Monday undermined by real estate stocks.

Abu Dhabi National Energy Co., better known as Taqa, said Monday it has secured the Ghana government's approval for the expansion of a power plant in the west African country.

United Arab Bank, a Sharjah-based lender listed on the Abu Dhabi bourse, Monday reported a 64% rise in second-quarter net profit on higher interest income.

SAUDI ARABIA: The Gulf's biggest market closed down 0.3% at 6641.30 Monday; bank stocks weighed.

Zain Saudi Arabia has sold just 54% of its $1.6 billion rights issue by late Monday, with one day left in the issue, the telco said.

National Industrialization Co., better known as Tasnee, on Monday reported a second-quarter net profit of SAR580.1 million, down 2.4% from SAR594.2 million a year earlier, as lower selling prices squeezed margins.

Etihad Etisalat Co., better known as Mobily, said it's second-quarter net profit rose 22% on year to SAR1.42 billion, as higher revenue from data services helped the telco beat most analyst expectations.

Both Bahrain-based Sico and Egypt-based EFG Hermes had expected Mobily to report SAR1.3 billion in net profit.

KUWAIT: The main gauge of stocks closed up 0.1% at 5860.38 Monday; real estate stocks were among the top risers.

Al Safwa Group Holding Co. Monday said it has signed a deal with one of its creditor banks for a complete and final settlement of a debt worth KWD38.3 million.

Securities House Monday said it is interested in merging with, or acquiring, Al Aman Investment Co.

QATAR: Doha's market ended +0.1% at 8295.03 Monday; propped up by industry stocks.

BAHRAIN: The benchmark stocks index ended up 0.2% at 1115.14 Monday; helped by the banking sector.

Gulf Finance House said Monday it reached a deal with banks to restructure a $100 million facility and will repay the debt over six years.

OMAN: Muscat's market closed +0.6% at 5498.51 Monday; led by bank stocks.

Bank Muscat shares ended 2.9% higher at OMR0.531. The bank's second-quarter net profit rose to OMR34.96 million, from OMR29.41 million in the same period in 2011, according to Zawya Dow Jones calculations based on a Bank Muscat statement posted on the Muscat stock exchange and figures from Zawya.com.

EGYPT: The benchmark EGX 30 Index closed +0.5% at 4740.53 Monday; the market fell 2% in the previous session.

NEWS FROM AROUND THE GULF: Oil export revenues earned by members of the Organization of Petroleum Exporting Countries exceeded $1 trillion for the first time in 2011, according to data published by the group Monday.

Iraq's oil ministry Monday initialed a deal with Kuwait Energy-led group to explore for gas and oil at an exploration block in southern Iraq, an Iraqi Oil Ministry official 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

17-07-12 0534GMT

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