MIDEAST MORNING BRIEFING: Gulf Mkts Seen Mixed; 2Q Focus Remains

Tuesday, Jul 31, 2012


 
Saudi SE               6822.86              +0.79% 
Dubai FM               1537.89              +1.91% 
Abu Dhabi SM           2495.12              +0.39% 
Kuwait SE              5728.47              -0.35% 
Doha SM                8276.74              -0.11% 
Muscat SM              5364.56              -0.22% 
Bahrain SE             1098.98              -0.96% 
Cairo SE               4765.88              +0.15% 
Amman                  1863.70              -0.38% 
 
ICE Brent $/bbl         106.29              +0.08% 
Gold $/troy oz         1627.30              +0.15% 
Euro-USD                  1.23              +0.24% 
DJIA                  13073.01              -0.02%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen mixed Tuesday as the focus remains on second-quarter earnings amid relatively light volumes due to Ramadan.

Several regional blue chips such as Qatar Telecom are expected to the report their financials this week that will likely drive trading, analysts say.

Regional sentiment may also find some support from mostly higher Asian stocks as investors eye the outcome of the U.S. Federal Reserve's policy meeting that ends Wednesday, and the meeting of the European Central Bank on Thursday.

Expectations of some sort of policy easing this week are high, especially in Europe where its leaders in recent days have reassured that they will take action to resolve the euro-zone's sovereign debt problems.

"It still seems the market is happy to buy into the idea that the ECB will meet elevated expectations, despite the continued talk that there is internal conflict within Draghi's ranks," one Melbourne-based analyst at IG Markets said.

Oil prices were slightly up Tuesday as investors looked ahead to a busy week of economic news. Nymex front-month crude futures were last up 8 cents at $89.86 a barrel Tuesday.

U.A.E.: Dubai's market ended +1.9% at 1537.89 Monday.

Bellwether Emaar rallied 4% to AED3.37 after its second-quarter net profit soared to AED614 million, up from AED250 million a year earlier, beating most analysts expectations.

"Overall, this looks like a quality 2Q2012 result from Emaar," analyst at NBK Capital said.

Telco Du said Monday net profit before royalty fees amounted to AED651 million in the second quarter, up 57% from AED414 million in the year before period. Its shares closed +1.3% at AED3.22.

Abu Dhabi shares were up 0.4% at 2495.12 Monday.

Sorouh Real Estate closed +2% at AED1.03; its earnings are expected this week.

Increasing the level of foreign ownership in Etisalat will assist corporate governance as well as improve liquidity and the value of its shares, the telco's chief executive said on Monday.

Etisalat shares rose sharply Sunday on hopes that a ban on foreign ownership of its stock may soon be lifted. They ended 0.1% higher at AED9.37 Monday.

SAUDI ARABIA: The region's biggest market closed 0.8% higher at 6822.86 Monday; supported by petchem and bank stocks.

"The Saudi market has moved up in line with global markets owing to expectations that there will be more easing from the ECB and Fed at their meetings later this week," said Paul Gamble, chief economist and head of research at Jadwa Investment.

Sabic and ExxonMobil Chemical, a part of U.S.-based Exxon Mobil Corp., expect to start production at their synthetic rubber plant in Jubail Industrial City in the second half of 2015, executives at the two companies said Monday.

KUWAIT: The main gauge of stocks ended -0.4% at 5728.47 Monday.

QATAR: Doha's market slipped 0.1% to 8276.74 Monday.

Qatar Telecom shares ended -0.1% at QAR104.90, after adding 2.1% in the previous session. The telco's quarterly results are expected this week.

BAHRAIN: The benchmark stocks index finished 1% lower at 1098.98 Monday.

Ahli United Bank, the biggest lender in Bahrain by market value, said Monday its net profit in the second quarter rose 3.7% on year to $87.52 million as interest income grew.

OMAN: Muscat's market closed down 0.2% at 5364.56 Monday.

Nawras reported Monday a 3% year-on-year drop in second-quarter net profit to OMR9.7 million as depreciation costs rose.

EGYPT: The benchmark EGX 30 Index closed up 0.2% at 4765.88 Monday.

NEWS FROM AROUND THE GULF: The United Arab Emirates will sign Tuesday a nuclear cooperation and safety agreement with Australia, an official said Monday, after the Gulf state was given the go-ahead earlier this month for construction of two nuclear power units, the first in a string of civilian power plants planned in the strategically sensitive Persian Gulf region.

Dubai-based real estate developer Nakheel, builder of the emirate's showpiece artificial islands, posted Monday a net profit of AED767 million for the six-month period, an increase of 36.5% from the year earlier period.

Passenger traffic at Dubai International Airport rose 13.7% in the fist six months of the year, the busiest first half in the transportation hub's history, putting it on track to meet its annual target of 56.5 million travellers.

Saudi Arabia's agriculture ministry and grain board have awarded more than SAR692 million in contracts for new grain silos and mills to bolster the country's grain, flour and fodder supplies, the government said Monday.

Saudi Arabia said Monday it has selected four consortia to bid for the contract to construct the country's first electric monorail project, a move which comes as part of a long series of major development projects taking place in cities across the Kingdom.

-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

31-07-12 0519GMT