Wednesday, Jul 18, 2012
Saudi SE 6588.81 -0.79%
Dubai FM 1529.42 +0.85%
Abu Dhabi SM 2462.75 +0.24%
Kuwait SE 5856.05 -0.07%
Doha SM 8314.33 +0.23%
Muscat SM 5504.14 +0.10%
Bahrain SE 1116.43 +0.12%
Cairo SE 4818.41 +1.64%
Amman 1881.12 -0.27%
ICE Brent $/bbl 103.33 -0.64%
Gold $/troy oz 1579.80 -1.67%
Euro-USD 1.23 +0.24%
DJIA 12805.54 +0.62%
By Brinda Darasha
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--A gloomy outlook for the U.S. economy, the world's biggest, by Federal Reserve Chairman Ben Bernanke and his failure to clearly signal any near term monetary stimulus is likely to initially weigh on Persian Gulf stock markets Wednesday.
"The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year," Mr. Bernanke told Congress on Tuesday.
While his guarded words over additional monetary stimulus measures buoyed Wall Street overnight, where the Dow Jones Industrial Average ended up 0.6%, Asian shares were mostly lower Wednesday as markets focused on the bleak outlook.
"This is a market that is obsessed with QE, and every piece of data will continue to feed into the markets' expectations of Fed action, thus the highly correlated nature of all parts of the capital markets will continue for the time being," analysts at IG Markets said in a client note.
Closer to home, investors will also look to second quarter company earnings to drive volumes.
Crude-oil futures are lower in Asian trading after Mr. Bernanke's testimony failed to deliver clear promises of further monetary stimulus. The fall in prices follows a strengthening of the dollar against the euro and the yen. Nymex August contract now trades at $88.22, down $0.42 on Globex.
U.A.E.: Dubai's market Tuesday ended +0.9% at 1529.42 supported by real estate and financial stocks.
Emaar Properties closed +1.2% at AED3.27. The stock has risen 7.6% since Thursday.
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. 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, TNI added.
Arabtec Holding gained 1% at AED2.97 after adding 2.8% Monday. Analysts say Aabar Investments is unlikely to add to its declared 21.57% shareholding in Arabtec Holding, after securing effective control of the Dubai-based construction firm.
Low-cost carrier Air Arabia posted over 15% year-on-year second quarter lift in passenger volumes driven by network expansion and cheap fares, it said Tuesday.
Abu Dhabi shares closed +0.2% to 2462.75 Tuesday. Banks and energy shares supported.
Commercial Bank International was top riser; +5% at AED1.05, while Union National Bank rose 4% at AED2.90.
SAUDI ARABIA: Saudi's Tadawul Index closed Tuesday -0.8% at 6588.81. Banks and petrochemicals undermined the index.
Sabic closed -0.3% at SAR86.25. The petrochemicals major is expected to report earnings later Wednesday.
Focus is also on Zain KSA as its rights issue subscription period ended late Tuesday. Shares closed +5% at SAR12.50 after falling 4.4% in the previous session.
Samba Financial Group, Saudi Arabia's second-largest lender by market value, said Tuesday it will distribute SAR890 million in dividends at SAR80 per share for the first half of 2012. Its shares closed -1.6% at SAR44.
Etihad Etisalat Co. shares closed -0.8% at SAR65.25 Tuesday. The telco, better known as Mobily, said Monday its board approved a 2Q dividend distribution representing 10% of the par value of the share, or SAR1 a share.
Mobily posted a 2Q net profit rise of 22% on year to SAR1.42 billion Sunday, as higher revenue from data services helped the telco beat most analyst expectations. The 2012 targets for Mobily's top-line and net profit growth--of 10.4% and 7.5% to SAR22.133 billion and SAR5.463 billion respectively--are attainable in light of the stronger prospects for 2H2012, especially 4Q2012, investment bank Beltone said in a note.
HSBC upgraded Saudi Telecom Co. to overweight from neutral rating, and kept its target price at SAR44. Expects 2Q earnings to be a positive catalyst based on strong domestic performance. Its shares closed flat at SAR36.50 Monday
KUWAIT: The Kuwait stock exchange ended -0.1% to 5856.05 Tuesday. Energy stocks led the decline.
Kipco Asset Management Co., or Kamco, said Tuesday it has sold its entire 6.22% stake in the local Advanced Technology Co. (ATC.KW) for KWD7.84 million.
Mena Real Estate Co., or MREC, Tuesday said it has signed a memorandum of understanding with Bahrain's Aqari Real Estate Co. to develop a plot of land there at an estimated cost of $6.63 million.
QATAR: Qatar's QE Index closed +0.2% at 8314.33 Tuesday led by banks and financial services.
BAHRAIN: The main gauge of stocks closed Tuesday +0.1% at 1116.43.
Private equity firm Investcorp (INVCORP.BH) Tuesday said it bought a 30% stake of Turkish menswear retailer Orka Group for an undisclosed amount, the group's third investment in Turkey.
OMAN: Muscat's market closed +0.1% at 5504.14 Tuesday as bank shares led up.
Bank Muscat shares rose 0.6% at OMR0.527 Tuesday. The lender Monday posted a 19% rise in second-quarter net profit to OMR34.96 million.
National Bank of Oman Tuesday reported a 10.4% increase in second-quarter net profit to OMR10.3 million as loans and deposits rose. Shares closed +0.7% at OMR0.28.
Acwa Power Barka Tuesday said it has been awarded a local water expansion project by state-run Oman Power and Water Procurement Co., or OPWP, that involves setting up a seawater reverse osmosis plant.
EGYPT: The Egyptian index of shares EGX 30 closed +1.6% at 4818.41 Tuesday. The index is +33% for the year.
Talaat Mostafa Group ended +3.9% at EGP4.04 and Telecom Egypt closed 3.6% at EGP12.85.
NEWS FROM AROUND THE GULF: Saudi Arabia's non-oil exports were almost flat at SAR14.8 billion in May, compared with SAR14.78 billion a year earlier, data from the Central Department of Statistics and Information, or CDSI, showed.
Russia's oil producer OAO Lukoil Holdings (LKOH.RS) and its partner Japan's Inpex Corp. (1605.TO) Tuesday initiated a deal with the Iraqi Oil Ministry to explore for oil at an Iraqi block in southern Iraq, a senior Iraqi oil official said.
-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
18-07-12 0507GMT
