Thursday, Aug 23, 2012
Saudi SE 7003.79 00.00%
Dubai FM 1576.15 -0.29%
Abu Dhabi SM 2589.50 +0.53%
Kuwait SE 5765.44 +0.79%
Doha SM 8495.34 +0.10%
Muscat SM 5510.10 00.00%
Bahrain SE 1083.43 +0.23%
Cairo SE 5161.93 -0.33%
Amman 1887.87 +0.87%
ICE Brent $/bbl 115.90 +0.86%
Gold $/troy oz 1665.50 +1.39%
Euro-USD 1.25 +0.16%
DJIA 13172.76 -0.23%
By Brinda Darasha
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--The possibility of further action by the U.S. Federal Reserve to stimulate the world's largest economy will likely underpin Persian Gulf stock markets on Thursday.
Overnight on Wall Street, the Dow Jones Industrial Average recovered earlier losses to close down just 0.2% after the market reacted positively to U.S. Federal Reserve minutes that showed many members favored more stimulus measures if there is no pick-up in economic growth.
"There is positive momentum in the market and that will build up as there is more and more interest in building positions," said Mohammed Ali Yasin, managing director of Abu Dhabi Financial Services. The current rally has the legs to continue, he added.
Elsewhere in the region, Egyptian stocks are likely to grab attention again after the country formally requested a $4.8 billion loan from the International Monetary Fund in a fresh effort to heal its ailing economy.
In terms of oil, Nymex crude for October delivery was last up 64 cents at $98.10 a barrel on Globex.
U.A.E.: Dubai's market Wednesday ended -0.3% at 1576.15 dragged by real estate and investment sectors.
Abu Dhabi shares closed +0.5% at 2589.50. Telecoms and industry sectors led the gains.
National Bank of Abu Dhabi's repayment of AED1 billion of Ministry of Finance subordinated notes shows NBAD management is comfortable with their liquidity and capitalisation position, said an analyst at EFG Hermes.
SAUDI ARABIA: The benchmark Tadawul Index closed 0.5% higher at 7003.79 on Aug. 15. The stock exchange is closed until Aug. 25 for Eid.
KUWAIT: The Kuwait stock exchange ended 0.8% higher at 5765.44 Wednesday led by telecom stocks.
Shares of Kuwait's National Mobile Telecommunications Co. or Wataniya, closed +4.6% at KWD2.30. Wataniya resumed trading Wednesday after being suspended since June 25 after Qatar Telecom, or Qtel, first approached Kuwait's regulator for approval to go ahead with a planned tender offer for the stock it doesn't already own. Qtel said on Aug. 16 that the Kuwait Capital Markets Authority has given its OK for the tender bid.
Gulf Investment House, or GIH, Wednesday said it has signed an agreement to sell its entire stake in local firm Sama Educational Co. for KWD7.6 million. GIH shares rose 10% to close at 26.5 Kuwaiti fils in a broadly higher overall market.
Elsewhere, Tijara and Real Estate Investment Co. said Wednesday in a statement that a preliminary contract to sell local commercial real estate assets has been annulled as the potential buyer didn't settle the price on time. Tijara shares closed trading -4.8% at KWD0.04.
QATAR: Qatar's QE Index closed 0.1% higher at 8495.34 Wednesday.
Qatar Telecom, or Qtel, shares closed +1% at QAR110.0.
BAHRAIN: The main gauge of stocks closed Wednesday +0.2% at 1083.43 as most sectors notched gains.
OMAN: Muscat's market ended flat at 5510.10 on Aug. 16. Trading resumes Thursday following the Eid break.
EGYPT: The main Egyptian index of shares EGX 30 closed -0.3% at 5161.93 Wednesday. The index had gained 0.3% in the previous session.
President Mohammed Morsi made the request for $4.8 billion loan during a meeting with Christine Lagarde, the IMF's managing director who was in Cairo Wednesday.
"If this materialises before the end of the year (as the recent statement from the Egyptian Prime Minister suggested), it would mark a turning point for Egypt's economy--and should pave the way for a period of decent growth over the next five years or so," Said Hirsh, an analyst at London-based Capital Economics said in a client note.
The loan request marks an increase from previous negotiations for a loan of $3.2 billion that Egypt's military leadership rejected last year.
At a stock level, Ezz Steel closed -3% at EGP9.02 on profit taking after the scrip gained 4.6% in the previous session. Elsewhere, Mobinil retreated 3% to end at EGP142.65.
NEWS FROM AROUND THE GULF: Oil production in Saudi Arabia, the world's largest crude exporter, rose to 10.103 million barrels a day in June, from 9.807 million barrels a day in May, overtaking Russia as the world's largest producer, official data showed.
Alternative-fuel provider Quadrise Fuels International Ltd. (QFI.LN) said an agreement to trial its emulsion fuel oil technology in a refinery owned by Saudi Arabian Oil Co., or Saudi Aramco, may help it form new commercial relationships.
-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
23-08-12 0502GMT
