Jun 06 2012
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MIDEAST MORNING BRIEFING: Gulf Mkts Seen Mixed; Global Cues Eyed
Wednesday, Jun 06, 2012
Saudi SE 6736.82 -0.49%
Dubai FM 1449.80 +0.89%
Abu Dhabi SM 2433.39 +0.45%
Kuwait SE 6130.20 +0.60%
Doha SM 8322.19 -0.13%
Muscat SM 5764.93 +0.80%
Bahrain SE 1131.46 -0.25%
Cairo SE 4502.91 -2.31%
Amman 1869.05 +0.26%
ICE Brent $/bbl 99.34 +0.51%
Gold $/troy oz 1627.90 +0.74%
Euro-USD 1.25 +0.40%
DJIA 12127.95 +0.22%
By Brinda Darasha
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf region are likely to trade mixed Wednesday on subdued volumes as news flow in the region thins out in a seasonal dip.
Investors however are likely to keep an eye on some positive global cues arising from the possibility of a fresh round of stimulus from the U.S. Federal Reserve. A report in The Wall Street Journal said that disappointing economic data, weak financial markets, and the European crisis have made policy action at the U.S. central bank a possibility once again.
The euro, spot gold and oil futures were all higher as the markets also eyed the European Central Bank's meeting later today.
Asian stocks rose on Wednesday and European markets are expected to start higher.
U.A.E.: Dubai's market Tuesday ended +0.9% at 1449.80, while in Abu Dhabi, the gauge closed +0.5% at 2433.39.
Real estate shares led the rebound in both markets as traders picked up bargains after recent sharp losses.
Emaar Properties rose 2.5% to AED2.83 on the DFM while Sorouh Real Estate was among top risers in Abu Dhabi, +4.2% at AED1.02.
SAUDI ARABIA: Saudi's Tadawul Index closed Tuesday -0.5% at 6736.82.
The outlook for the Saudi banking sector remains strong, NCB Capital said in a note. Added it continued to prefer the larger banks which are better able to tap the retail lending opportunity and trade at attractive valuations.
Shares of Al Tayyar Travel Group which began trading Monday closed -1.3% at SAR58.50. In May, the company sold 24 million shares or 30% of the group's total outstanding shares in an IPO.
Construction firm Mohammad al Mojil Group, or MMG, has hired a financial specialist from the United Kingdom as acting chief executive officer as the company restructures, MMG said Tuesday.
KUWAIT: The Kuwait stock exchange ended +0.6% to 6130.20 Tuesday. Energy and telecom stocks supported.
IFA Hotels and Resorts said Tuesday that its board has proposed increasing the company's capital 40% by issuing nearly 181.6 million new shares at KWD0.23 each.
QATAR: Qatar's QE Index closed -0.1% to 8322.19 Tuesday. The index is down 5% for the year.
Qatar Telecom , or Qtel , said Tuesday it plans to double its stake in mobile operator Asiacell to 60%, a deal worth close to $1.5 billion and one that will give the Doha-based telco more exposure to Iraq's fast growing telecoms industry.
Qtel shares closed down 0.9% at QAR112
BAHRAIN: The main gauge of stocks closed -0.3% at 1131.46 Tuesday, banks undermined.
Investment bank Gulf Finance House, or GFH, said Tuesday that shareholders have approved using its reserves to write off KWD8.77 million of accumulated losses. The bank is cross listed on the Kuwaiti bourse website.
OMAN: Muscat's market closed +0.8% at 5764.93 Tuesday. Banks and services supported the gains.
Renaissance Services Tuesday said that Rene Kofod-Olsen has been appointed as chief executive of its fully-owned unit, Topaz Energy and Marine.
Renaissance shares closed 0.2% higher at OMR0.515 in an overall positive market.
EGYPT: The main Egyptian index of shares EGX30 closed -2.3% at 4502.91 Tuesday; Mobinil slumped 9.8% to EGP136.66.
Investors are jittery as tensions rise in the Arab country. Tens of thousands of demonstrators converged on downtown Cairo Tuesday night in a united expression of outrage over two concerns: the presidential candidacy of a former regime loyalist, and a weekend court verdict that exonerated top security officials accused of playing prominent roles in the killing of hundreds of protesters last year.
EFG Hermes ended -0.7% at EFG10.80. The bank that is currently the target of an attempted hostile takeover, said net profit in the first quarter was little changed on the year as regional and global turbulence continued to drag on earnings.
Elsewhere, just days after EFG Hermes received full shareholder support for its planned alliance with Qatar's QInvest, the Planet IB consortium that is attempting a hostile takeover of the bank said shareholders should force the board to either allow the group of investors to conduct due diligence or resign.
NEWS FROM AROUND THE GULF: Drydocks World, a ship-builder owned by government-controlled conglomerate Dubai World, said Tuesday its $2.2 billion debt restructuring remains on track to be completed in the third quarter of the year.
Gulf Capital, an Abu Dhabi-based investment and private equity firm, is set to plow AED1 billion into a new residential compound in Riyadh through its real estate arm as it eyes other deals in Saudi Arabia, Egypt and the United Arab Emirates.
Abraaj Capital, the Middle East's biggest private equity firm, is looking to close two acquisitions in Turkey this year after exiting a health care investment there in January.
More restructuring is in store for companies in the Arab Gulf as they step back and take a fresh look at their businesses, according to a senior executive at global accounting and consulting firm PwC.
Egypt's trade deficit more than doubled to EGP14.2 billion in the year to February 2012 as the price of commodities such as petroleum products, iron, steel and crude oil rose, data from the country's official statistics agency showed Tuesday.
-By Brinda Darasha, Dow Jones Newswires; +9714 446-1688; email@example.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
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