Thursday, May 02, 2013


 
Saudi SE             7175.36                -0.06% 
Dubai FM             2136.67                +0.06% 
Abu Dhabi SM         3273.50                 0.00% 
Kuwait SE            7562.83                +1.78% 
Doha SM              8667.85                -0.11% 
Muscat SM            6145.72                +0.30% 
Bahrain SE           1104.17                +0.28% 
Cairo SE             5196.48                -0.05% 
Amman                2005.30                +0.36% 
 
ICE Brent $/bbl       100.08                +0.13% 
Gold $/troy oz       1453.70                -0.30% 
Euro-USD                1.32                 0.00% 
DJIA                14700.95                -0.90%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Dubai shares will remain a big focus for many investors in the Persian Gulf region on Thursday as investors question whether the emirate's stock rally this year has outpaced its fundamentals.

The city's DFM General Index has gained over 30% in 2013, ranking it amongst the world's top five best performing indexes so far this year. The rally, analysts argue, reflects growing optimism surrounding Dubai's economic recovery. The city's property sector is showing signs of a pick-up, while tourist arrivals have reached record levels.

"The fact that this has evolved into a rally that includes small caps as well and on strong volumes is inherently bullish for the overall trend," said Akber Naqvi, executive director at Al Masah Capital in Dubai. "It may not be wise to stand in front of a speeding train but portfolios that have considerable profits, especially ones with entry points from last summer, it would be smart to lock in some gains and take money off the table."

Local stocks will take little comfort from a weak performance on international bourses overnight. The Dow Jones Industrial Average declined 138.85 points, or 0.9%, to 14700.95, its worst start to a month since June 2012. Investors on Wall Street reacted to disappointing economic data and found little confidence in the Federal Reserve's decision to keep its easy-money policies in place. Asian stocks were mostly lower on Thursday.

SAUDI ARABIA: The Saudi market is closed for the weekend. The benchmark Tadawul Index ended down 0.1% at 7175.36 on Wednesday.

U.A.E.: Dubai's market closed up 0.1% at 2136.67 on Wednesday.

Tabreed shares raced up 4.5% to AED1.64 and Emirates NBD jumped 1% to AED5.10.

Emaar shares tumbled 1.3% to AED5.54. The region's biggest developer on Tuesday said net income in the first three months of the year fell 8%, missing most analyst forecasts, as expenses increased.

Analysts at NBK Capital said Emaar's first-quarter profit was broadly inline with its own forecast of AED552 million. It maintained a hold recommendation on the stock with a fair value of AED5.85.

Elsewhere, telco Du posted a 13% jump in first-quarter net profit before royalty payment to AED752 million. Its shares closed Wednesday at AED5.11.

In Abu Dhabi, the benchmark index there finished flat at 3273.50.

"Waiting for a retracement lower towards the 3,200.00 support level, or alternatively the break of the 3,290.00 resistance level, in order to reinstate long positions," said technical analysts at Mena Corp.

KUWAIT: The market finished 1.8% higher at 7562.83.

QATAR: Doha's market closed down 0.1% at 8667.85 on Wednesday.

Shares of Qatar Telecom fell 0.9% to QAR114.0. The largest telecoms operator in the Gulf state, reported a 14% advance in first-quarter earnings late Tuesday, beating expectations, as subsidiaries in Algeria and Indonesia performed strongly.

"While overall we found the quarter rather uninspiring, we remain positive on Qtel and maintain our FV of QAR143.4/share and our buy rating on the stock," said analysts at EFG Hermes.

BAHRAIN: The main gauge of stocks closed Wednesday up 0.3% at 1104.17.

OMAN: Muscat's market ended 0.3% higher at 6145.72.

In terms of stocks, Bank Sohar gained 1.1% to OMR0.186, while Oman Telecom rose 0.2% to OMR1.436.

EGYPT: The market was closed Wednesday for May day holiday. The main gauge there finished at 5196.48 on Tuesday.

EFG Hermes, the Middle East's top investment company, said Wednesday its joint venture agreement with Qatari investment bank QInvest expired after it failed to receive necessary approval from Egypt's market regulators.

NEWS FROM AROUND THE GULF: Kuwait Energy Co. said Wednesday it has secured a $25 million financing from Kuwait International Bank to finance part of the acquisition of Jannah Hunt Oil Co. in Yemen.

Abu Dhabi is putting in place a financial regulator and commercial court system for its new financial free zone on Al Maryah Island, where foreign companies are also to be allowed to fully own businesses without a local partner, according to a statement from the emirate's Executive Council Wednesday.

Debt restructuring talks between Dubai Holding Investment Group, a company with links to the emirate's ruler, and its creditors over a $1.2 billion loan have stalled after the government-controlled firm added new terms to an initial deal agreed by both parties earlier this year, people familiar with the matter said.

Write to Tim Falconer at tim.falconer@dowjones.com

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

02-05-13 0505GMT