Wednesday, Apr 25, 2012


 
Saudi SE             7512.26                -0.17% 
Dubai FM             1670.05                +1.80% 
Abu Dhabi SM         2505.09                +0.23% 
Kuwait SE            6327.60                +0.02% 
Doha SM              8664.20                -0.34% 
Muscat SM            5952.32                -0.11% 
Bahrain SE           1148.10                -0.27% 
Cairo SE             4908.36                -0.82% 
Amman                2001.75                -0.42% 
 
ICE Brent $/bbl       118.40                +0.20% 
Gold $/troy oz       1642.90                -0.57% 
Euro-USD                1.32                +0.00% 
DJIA                13001.56                +0.60%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Banks in the United Arab Emirates are likely to grab early attention Wednesday after two of the sector's heavyweights posted first quarter profits that beat most analyst expectations, while some solid earnings reports in the U.S. sparked a Wall Street rally overnight that should give local investors a confidence boost.

On Tuesday, Abu Dhabi-based lenders National Bank of Abu Dhabi and Abu Dhabi Commercial Bank both beat the street with their first quarter earnings reports. Dubai heavyweight Emirates NBD is due to report later Wednesday.

On Wall Street overnight, the Dow Jones Industrial Average gained 74.39 points, or 0.6%, to 13001.56 Tuesday, as investors cheered better-than-expected earnings from the likes of AT&T and 3M.

"Strong U.S. earnings and a decent Dutch auction (Tuesday) has calmed some anxiety towards Europe," said one trader at IG Markets.

Nymex crude futures last traded 13 cents higher at $103.68 a barrel; ICE Brent was up 8 cents at $118.24/bbl.

U.A.E.: Dubai's market closed 1.8% higher at 1670.05 Tuesday.

Dubai-based Aramex said Tuesday first-quarter net profit rose 22% on the year, boosted by a stronger performance in the Gulf Cooperation Council region as well as in Africa. Aramex shares closed 1.1% higher at AED1.83.

Emaar shares rose 0.3% to AED3.30. The real estate developer said Monday it will stick with an earlier proposal to pay 10% of its share capital as a dividend for 2011, the same level as for 2010, despite speculation the property company might offer a higher payout.

In Abu Dhabi, the benchmark index there finished up 0.2% at 2505.09.

National Bank of Abu Dhabi, the United Arab Emirates' second largest lender by assets, posted a 12% rise in first quarter net profit Tuesday as impairment charges fell and customer deposits surged. NBAD shares didn't trade Tuesday as they were suspended ahead of the release of its first quarter earnings.

Abu Dhabi Commercial Bank, the emirate's third-biggest lender by market value, said Tuesday its first-quarter net profit rose 38% on year to 802 million U.A.E. dirhams ($218.5 million), as net interest and Islamic financing income climbed. ADCB shares didn't trade Tuesday as they were suspended ahead of the release of its first quarter earnings.

SAUDI ARABIA: The benchmark Tadawul Index closed 0.2% down at 7512.26 Tuesday, with banking shares and petrochemical stocks pacing the decline.

"If the index fails to sustain above 7,495, it may test 7,425 and 7,375. On the other hand, the uptrend may resume if it trades above 7,590 and 7,640," technical analysts at NCB Capital said in a note.

KUWAIT: The market finished flat at 6327.60 Tuesday.

Kuwait-based Agility, the biggest logistics firm by market value in the Persian Gulf, said Tuesday it has filed a claim against the U.S. Defense Logistics Agency, or DLA, seeking damages of $225 million for alleged breach of contract. Agility shares rose 4.9% to KWD0.425.

QATAR: Doha's market closed Tuesday down 0.3% at 8664.20.

Qatar Telecom better known as Qtel, said Tuesday it will use cash to pay off debt due this year and doesn't have any "immediate" refinancing plans. Qtel shares closed down 0.4% at QAR128.90 Tuesday.

BAHRAIN: The main gauge of stocks closed 0.3% down at 1148.10 Tuesday.

OMAN: Muscat's market ended -0.1% at 5952.32 Tuesday.

Omani Qatari Telecommunications Co. (NWRS.ON), better known as Nawras, posted a 19% drop in first-quarter net profit Tuesday, as the telco continues to feel the heat in what it termed a highly competitive domestic market. Nawras shares closed Tuesday down 0.2% at OMR0.59 in Muscat.

EGYPT: The market closed down 0.8% at 4908.36 Tuesday.

HSBC said in a note the expected cash from the IMF will cover less than 15% of Egypt's projected budget deficit, and the focus will be on whether it can act as a catalyst for alternate sources of funding.

NEWS FROM AROUND THE GULF: The Government of Dubai plans to issue Islamic bonds, or sukuk, worth about $1 billion this week and has mandated four banks to arrange the transaction, a senior government official told Zawya Dow Jones Tuesday

Saudi Arabia's oil minister and business leaders are voicing renewed worries over Europe's economic troubles, although Gulf economists say the kingdom's cash reserves would help the world's largest oil-producer ride out any temporary economic downturn in the euro zone.

Iranian oil stored at sea is building up due to international sanctions but the measures are also proving a boon to its home-grown tanker operator, officials in Tehran said Tuesday, underscoring the mixed effect of mounting pressure on the country.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

25-04-12 0508GMT