Tuesday, May 21, 2013


 
Saudi SE              7307.36               +0.10% 
Dubai FM              2341.20               -0.47% 
Abu Dhabi SM          3523.34               -1.15% 
Kuwait SE             8125.98               +1.31% 
Doha SM               9064.31               +0.61% 
Muscat SM             6384.73               -0.13% 
Bahrain SE            1162.84               +0.39% 
Cairo SE              5432.15               -0.35% 
Amman                 2010.64               -0.21% 
 
ICE Brent $/bbl        105.05               +0.24% 
Gold $/troy oz        1388.70               +0.33% 
Euro-USD                 1.28               +0.03% 
DJIA                 15335.28               -0.12%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen mixed Tuesday as investors likely pause to assess the merits of some sharp recent gains.

Several regional markets such as Dubai, Abu Dhabi and Kuwait are trading at multi-year highs amid optimism about the local economies, but the focus will probably shift to valuations during the summer months when activity usually ebbs, a fund manager at a Muscat-based investment bank said.

In the global markets, weak Asian shares will also likely weigh on regional sentiment. With a strong U.S. dollar, investors are also looking ahead to Federal Reserve Chairman Ben Bernanke's testimony before the U.S. Joint Economic Committee on Wednesday, ahead of minutes from the Federal Open Market Committee meeting due later the same day.

Oil prices were slightly up with the Nymex June crude futures contract last +16 cents at $96.87 a barrel.

U.A.E.: Dubai and Abu Dhabi stocks fell on Monday after adding billions of dollars in market value this year.

Dubai's market finished 0.5% lower at 2341.20 Monday; Arabtec Holding -2.1% to AED2.39 as investors worried about striking workers at the construction company.

Arabtec on Tuesday said it is working closely with various government agencies to resolve the dispute and that the "partial" stoppage won't affect its project delivery timelines.

The rare protest could signal further downside risks to Arabtec margins going forward should the company be pressured to increase the disputed wages, an analyst at EFG Hermes said.

Air Arabia, the low-cost carrier based in the United Arab Emirates, has signed a $350 million financing agreement to help buy 10 new aircraft from Airbus.

Abu Dhabi's market was down 1.2% at 3523.34, weighed by financial and real estate stocks.

SAUDI ARABIA: The Tadawul market ended +0.1% at 7307.36 Monday.

An analyst at NCB Capital reckoned if the index sustains above the 7315 level, it may test 7350 in the near term. He noted, on the other hand, it could find support at 7280.

Dar Al Arkan shares fell 6.3% to SAR8.95 after company said it won't distribute a dividend for 2012. The stock rose 4.4% in the previous session.

Dar Al Arkan in a separate statement on Monday also said it plans to issue a U.S. dollar Islamic bond, or sukuk, to help finance its projects.

KUWAIT: The benchmark index rose 1.3% to 8125.98; the market is now up some 37% for the year. Telecom stocks were among the top risers Monday.

QATAR: Doha's market ended +0.6% at 9064.31 Monday, propped up by insurance and real estate stocks.

BAHRAIN: The main gauge of stocks closed up 0.4% at 1162.84 Monday, supported by the service sector.

OMAN: Muscat's market finished -0.1% at 6384.73 Monday, undermined by industry and bank stocks.

EGYPT: The benchmark EGX 30 Index closed down 0.4% at 5432.15 on Monday.

NEWS FROM AROUND THE GULF: The economies of Arab countries in transition could deteriorate further should their political and security situations worsen, the International Monetary Fund said on Tuesday in an update to its Regional Economic Outlook.

A trio of state-controlled Qatari entities is setting up a new shareholding company that will look to invest some of the gas-rich country's financial firepower in overseas energy infrastructure, a statement on the Doha bourse said on Monday.

Arcapita Bank said an energy company's fraud claim stemming from Arcapita's sale of Texas natural-gas assets should be pushed behind the claims of other creditors.

Gulf Capital, a private equity firm based in Abu Dhabi, has lined up $360 million of Islamic financing for its Gulf Marine Services unit to refinance debt at better rates and pay a dividend to shareholders, its chief executive said on Monday.

Write to Nikhil Lohade at nikhil.lohade@dowjones.com

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

21-05-13 0518GMT