Monday, Apr 15, 2013
Saudi SE 7195.67 -0.38%
Dubai FM 1975.70 0.00%
Abu Dhabi SM 3134.09 +0.22%
Kuwait SE 6963.65 -0.20%
Doha SM 8381.03 -1.18%
Muscat SM 6263.01 +0.07%
Bahrain SE 1091.88 +0.36%
Cairo SE 5300.28 +1.32%
Amman 2099.57 +0.39%
ICE Brent $/bbl 101.04 -1.96%
Gold $/troy oz 1441.20 -4.00%
Euro-USD 1.30 -0.32%
DJIA 14865.06 -0.01%
By Brinda Darasha
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Persian Gulf markets are likely to focus on company earnings for direction Monday as first quarter results from Saudi Arabia, the region's biggest economy, continue to dominate local news flow.
"Moreover, quarterly results from the wider region are anticipated to start trickling in this week before gathering pace later in the month," Shuaa Capital said in a client note.
Investors are also likely to take on board an unexpected slow down in China's economic growth in the first quarter, raising concerns that a recovery that started in the second half of last year is already losing steam. Gross domestic product grew 7.7% on a year-to-year basis in the first quarter, down from 7.9% in the fourth quarter of 2012 and lower than many economists forecast, according to Chinese official data released on Monday. The median GDP forecast of 14 analysts polled by The Wall Street Journal was 8%.
Asian markets fell Monday in reaction to the Chinese data. The Shanghai Composite Index was trading 0.9% lower, edging back from slightly heavier losses right after the data was released. Hong Kong's Hang Seng Index was down 1.5%, while Australia's S&P/ASX 200 lost 1.4%, and Japan's Nikkei Average fell 1.6%.
Oil futures also suffered after the data, with the market already weighed by worries about slower global demand for the commodity.
Light, sweet crude for May delivery last traded down $2.39 at $88.90 a barrel on the New York Mercantile Exchange while ICE North Sea Brent for May delivery was 2% down at $101.04
U.A.E.: Dubai's market Sunday ended flat at 1975.70. The index paused for breath after adding over 5% over the past week.
Arabtec was among top losers; -2.7% at AED2.16, while Union Properties gained 4.5% at AED0.44.
Dubai's strong macroeconomic fundamentals and political stability attract offshore investors eyeing the emirate's property market, said Jones Lang LaSalle in a note Sunday.
Abu Dhabi shares closed +0.2% at 3134.09 Sunday. Telco shares advanced.
Etisalat closed 1.1% higher at AED9.90, while Sudan Telecommunication was 4.5% higher at AED1.10.
SAUDI ARABIA: Saudi's Tadawul Index closed Sunday -0.4% at 7195.67. Petchems declined, dragged mainly by a mixed set of results.
Saudi Kayan Petrochemical Co. closed -0.9% at SAR11.55. The company said earlier Sunday its first-quarter loss more than doubled to SAR154.9 million.
Index heavyweight Saudi Basic Industries Corp., or Sabic, whose 1Q results are expected this week, ended down 3.9% at SAR93.75.
Banque Saudi Fransi tumbled 6% to SAR29.80. The lender Sunday posted a 13% drop in first quarter net profit, missing most analyst forecasts.
NCB Capital put BSF's earnings disappointment down to lower margins and higher provisions. "We believe the provisions in 1Q13 could be due to the bank's significant SAR1 billion exposure to Zain KSA; the telecom company still has not rescheduled its SR9bn debt with creditors and the provisioning could be attributed partly to that exposure," NCB Capital said.
Saudi Arabia Fertilizers Co. shares closed trading at SAR152, up 0.3%.
Safco, on Sunday posted an 18% jump in first-quarter net profit to SAR932 million, up from SAR787 million a year ago.
KUWAIT: The Kuwait stock exchange ended -0.2% at 6963.65 Sunday.
QATAR: Qatar's QE Index closed -1.2% at 8381.03 Sunday. Real estate and industrial stocks declined.
BAHRAIN: The main gauge of stocks closed Sunday up 0.4% at 1091.88. Commercial banks supported the advance.
OMAN: Muscat's market closed 0.1% higher at 6263.01 Sunday.
EGYPT: The Egyptian index of shares EGX 30 Index closed up 1.3% at 5300.28 Sunday. The index has stayed buoyant amid optimism about the recent financial aid packages from Qatar and Egypt.
The Egypt central bank said Monday it held an "exceptional" foreign exchange auction on Sunday for $600 million to cover the costs of the country's most important imports.
Earlier Sunday the central bank governor was cited as saying that Egypt could still ask the International Monetary Fund to increase by $1 billion the $4.8 billion loan it has requested if the maturity period on the loan was extended.
On a technical note, NBK Capital said of the index that a break above 5,300 should lead to a further advance towards the next resistance level at 5,430.
NEWS FROM AROUND THE GULF: Dubai's Emirates Airline is set to sign a shirt sponsorship deal with Real Madrid worth up to 30 million euros a year, the latest high profile sports investment by the Middle East carrier, according to a senior official at the company.
Cash-strapped Egypt will spend $18 billion over coming years to build new refineries and modify existing plants in a move to increase its annual fuel output, the country's oil minister said in an interview with Al Tahrir Television.
Construction of the oil refinery complex developed jointly by French oil major Total SA (TOT) and state-giant Saudi Arabian Oil Co., or Saudi Aramco, is almost complete and will receive its first crude oil feed within weeks, Total's chief executive Christophe de Margerie said in an interview with Al Arabiya Television aired Sunday.
Write to Brinda Darasha at brinda.darasha@dowjones.com
Copyright (c) 2013 Dow Jones & Co.
(END) Dow Jones Newswires
15-04-13 0450GMT
