Wednesday, Oct 24, 2012


 
Saudi SE           6729.48       -0.18% 
Dubai FM           1650.26       -0.11% 
Abu Dhabi SM       2653.45       +0.20% 
Kuwait SE          5744.54       +0.49% 
Doha SM            8511.97       -0.30% 
Muscat SM          5660.97       +0.25% 
Bahrain SE         1062.46       +0.24% 
Cairo SE           5700.20       -0.37% 
Amman              1903.14       -0.25% 
 
ICE Brent $/bbl     108.93       +0.63% 
Gold $/troy oz     1712.00       -0.19% 
Euro-USD              1.30       +0.15% 
DJIA              13102.53       -1.82% 
 
 
 
   By Brinda Darasha 
   Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--United Arab Emirates stocks are likely to grab investor attention Wednesday after a slew of blue chips including Emaar Properties, Etisalat and National Bank of Abu Dhabi reported their third quarter earnings.

In the broader Persian Gulf region, volumes are likely to be thin ahead of a religious holiday beginning on Thursday in most markets. Volumes are likely to return after the Eid holidays, an analyst said.

Global equity markets have reacted badly to a disappointing U.S. earnings season, which may weigh on regional sentiment. On Wall Street overnight, the Dow Jones Industrial Average slumped 243.36 points, or 1.8%, to 13102.53, the benchmark's sharpest single-session loss since June. The Dow fell more than 200 points for the second time in three sessions, the highest such concentration of steep drops in nearly a year.

Asian stocks also fell Wednesday as risk appetite soured after sharp losses in the U.S. markets.

In the oil markets, December Nymex crude futures were last down $1.61 at $87.04 a barrel.

U.A.E.: Dubai's market Tuesday ended -0.1% at 1650.26 as banks and telcos weighed.

Tamweel was the top loser; -5% at AED1.30. The Islamic mortgage lender early Tuesday reported a 45.5% on year decline in third-quarter net profit on lower income from its financing activities and higher funding costs.

Aramex shares closed -1.5% at AED1.92. The logistics provider Tuesday posted a 11% rise in its third quarter net profit to AED53.1 million that missed most analyst expectations.

Du shares fell -0.5% to AED3.72. The telco said Monday its net profit in the third quarter rose 33.8% on higher data revenue and as it added more subscribers.

Emaar Properties, Dubai's biggest real estate developer, on Tuesday said its third-quarter net profit fell 5% on year to AED387 million, missing most analyst expectations. EFG Hermes projected a AED479 million net profit, while Bahrain's Sico expected it at AED441 million.

Abu Dhabi shares closed +0.2% at 2653.45 Tuesday, propped by real estate and banks.

First Gulf Bank shares closed +1.5% at AED10.15. The bank said Monday its third-quarter net profit rose 15% on year to AED1.05 billion on higher net interest income.

NBK Capital analysts said in a note that First Gulf Bank had strong third-quarter results and remains their top stock pick in the United Arab Emirates.

National Bank of Abu Dhabi, the largest bank in the United Arab Emirates by market value, on Tuesday reported a 9.1% rise in third-quarter net profit on higher operating income. It made a profit of AED1.12 billion in the quarter, compared to AED1.03 billion in the same period last year.

The National Bank of Fujairah said early Tuesday third-quarter net profit climbed 9.2% on year as net interest income rose and operating expenses fell.

Etisalat said Tuesday its net profit in the third quarter rose 28% on year, helped by gains from an asset sale and as revenue from its international operations grew.

Net profit after federal royalty increased by 28% to AED2.2 billion, Etisalat said in a statement posted on the Abu Dhabi bourse website.

SAUDI ARABIA: Saudi's main Tadawul Index closed Tuesday -0.2% at 6729.48; petchems and insurance sectors lead the market declines. Bellwether Sabic ended -1.1% at SAR87.75.

"Technically, the TASI is looking weak with support at 6650," analysts at Al Rajhi Capital said.

Fawaz Abdulaziz Alhokair and Co. said Tuesday net profit for its fiscal second quarter ending Sept. 30 jumped 25% on year to SAR252.4 million due to an outlet expansion and more sales in Ramadan.

Nama Chemicals Co. Tuesday said its third-quarter loss narrowed 55% on the year to SAR13.2 million due to lower production costs.

KUWAIT: The Kuwait stock exchange ended +0.5% at 5744.54 Tuesday. Financial services and real estate stocks led up.

Kuwait Finance House, the Gulf state's largest Islamic bank, said its board has elected Mohammed Al Khudairi as new chairman.

QATAR: Qatar's QE Index closed -0.3% at 8511.97 Tuesday undermined by the real estate sector.

Commercial Bank of Qatar shares ended -1% at QAR72.30. The bank on Monday said its third-quarter net profit was QAR548 million, in line with its profit in the year earlier period. It didn't provide a previous year figure, which amounted to QAR552 million, according to Zawya.com data.

Qatar Telecom, better known as Qtel, said Tuesday it has completed its $1.8 billion stake hike from 52.5% to 92.1% in Kuwait's National Mobile Telecommunications Co., or Wataniya, following approval from the regulators. It shares closed +1% at QAR105.80.

Barwa Real Estate Co., Qatar's second largest developer by market value, on Tuesday posted a sharp rise in third quarter net profit to QAR185.4 million on year from QAR80.1 million in the corresponding period of 2011, according to Zawya.com data. Barwa shares closed -1.9% at QAR28.35 Tuesday.

BAHRAIN: The main gauge of stocks closed Tuesday +0.2% at 1062.46 led by the services sector.

Bahrain Telecommunications Co., or Batelco, on Tuesday said its profit in the third quarter more than halved to BHD8 million, compared with BHD17.7 million in the year before period as revenues fell amid strong competition in its home market.

Investcorp plans to issue a five-year bond worth at least $250 million this week, according to a lead arranging bank.

OMAN: Muscat's market closed Tuesday +0.3% at 5660.97. Most sectors gained.

EGYPT: The Egyptian index of shares EGX 30 closed -0.4% at 5700.20 Tuesday.

Orascom Construction Industries closed -1.2% at EGP259.99. Mobinil ended -0.2% at EGP152.44.

Orascom Hotels and Development is in talks with the Egyptian government about the possibility of setting up a joint venture company to develop and operate the Taba Heights marina in the Sinai Peninsula, Orascom Development Holding, or ODH--the company's parent said Tuesday.

NEWS FROM AROUND THE GULF: The United Arab Emirates sees no need to raise its oil output because world oil markets are "well supplied and balanced," the country's oil minister Mohammed Al-Hamli said Tuesday.

Iran said Tuesday it isn't seeking a higher oil price, softening its previous stance and suggesting oil producers may find it easier to reach a consensus when they meet next month.

An OPEC panel Tuesday reviewed potential candidates to replace the group's departing secretary general, but it couldn't agree on a preferred candidate to head the organization, two delegates said.

Iraq's government Tuesday approved a 2013 draft budget of 138 trillion Iraqi dinars ($116.4 billion), compared with the 2012 budget of $100 billion, a government spokesman said.

Write to Brinda Darasha at brinda.darasha@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

24-10-12 0523GMT