Tuesday, May 01, 2012


 
Saudi SE              7558.47               +0.04% 
Dubai FM              1630.95               -0.52% 
Abu Dhabi SM          2503.82               -0.33% 
Kuwait SE             6368.60               +0.51% 
Doha SM               8703.64               +0.18% 
Muscat SM             5868.90               -0.03% 
Bahrain SE            1152.79               +0.37% 
Cairo SE              4945.21               +0.49% 
Amman                 1981.20               -0.43% 
 
ICE Brent $/bbl        119.31               -0.13% 
Gold $/troy oz        1666.70               -0.11% 
Euro-USD                 1.32                0.00% 
DJIA                 13213.63               -0.11%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Persian Gulf stocks are seen mixed Tuesday as investors remain cautious about the global growth outlook, while the spotlight will likely fall on Saudi Arabia as it takes further steps toward opening its market to foreign investors, analysts say.

The kingdom's market regulator said Monday it has signed an agreement allowing widely followed index compiler MSCI Inc. to use stock market data to create and issue indexes on the kingdom's equity market.

While this will allow for the reintroduction of MSCI indexes aimed at institutional investors who aren't constrained by foreign ownership limits, some industry observers say this is another move that indicates the kingdom's intention to open its market to foreign investors, which may eventually help earn it the much-coveted MSCI emerging market status.

Saudi Arabia--the largest, most liquid and yet least accessible market in the Arab world--currently allows foreign investors to access the local market via share-swaps and exchange traded funds.

The Saudi regulator earlier this month said it plans to open up its stock market to foreign investors, but will only do so gradually.

Asian stocks were mixed Tuesday as investors fretted over Spain's recession and stuttering U.S. economic growth, while drawing some support from China's improved manufacturing indicator.

Trading volumes dwindled in Asia as markets in China, Hong Kong, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam and India were shut for holidays.

Oil prices were slightly lower Tuesday, after slipping Monday weighed by a weaker stock market and fresh concerns about Europe's economic outlook. Nymex June crude futures were last down 14 cents at $104.73 a barrel.

U.A.E.: Dubai shares ended down 0.5% at 1630.95 Monday.

Dubai Islamic Bank shares fell 1% to AED1.97; the lender Monday said first-quarter net profit rose 11% on higher deposits and despite a slowdown in revenue growth.

DP World said strong Asia Pacific and Indian markets more than offset challenging conditions in Europe during the first three months of the year, as the ports operator posted a 9.5% rise in the amount of cargo it handled during the quarter.

Abu Dhabi's market was down 0.3% at 2503.82 Monday; weighed by real estate stocks.

National Bank of Abu Dhabi is looking to set up offices in India, Indonesia, Brazil, Iraq and possibly South Sudan after opening operations in Malaysia and Shanghai later this year.

SAUDI ARABIA: The Tadawul market ended flat at 7558.47 Monday; telco stocks supported, while banks dragged.

The benchmark index continues to fluctuate in a narrow range since the earnings season got over early last week.

Profitability for Saudi listed companies in the first quarter showed strong growth with market net income up 14.8% on year, according to NCB Capital. It said the quarterly net income was significantly aided by a 22.5% year-on-year increase in net income from the banking sector.

Saudi Arabian Mining Co., better known as Maaden, said Monday its affiliate Sahara & Maaden Petrochemical Co. had signed SAR1.882 billion commitment letter for the development of one of its projects.

National Industrialization Co., or Tasnee, said Monday it has picked HSBC Saudi Arabia to help issue riyal-denominated Islamic bonds, or sukuk. The firm will hold investor meetings next week for the sukuk issuance, it said, but did not give any further details.

KUWAIT: The market closed up 0.5% at 6368.60 Monday; real estate and investment sector stocks were among the top risers.

QATAR: Doha's market finished +0.2% at 8703.64 Monday.

Qatar Telecom rose 1.5% to QAR140.10, after reporting a 12% fall in 1Q net profit that still beat most expectations.

BAHRAIN: The market will be closed Tuesday, May 1, on the occasion of the Labor Day holiday.

OMAN: Muscat's market closed flat at 5868.90 Monday.

EGYPT: The market will be shut Tuesday, May 1, for the Labour Day holiday and will re-open May 2.

Egypt's Orascom Construction Industries said Monday it has received approval from the country's regulator to call for a meeting of shareholders to vote on a plan to split its construction and fertilisers businesses.

Mobinil on Monday swung to a first-quarter net loss of EGP74 million on higher depreciation and amortization costs, but aims to boost its broadband subscriber base to offset local competition.

NEWS FROM AROUND THE GULF: Qatar Airways will defer the delivery of its Airbus A380 aircraft until it has more clarity about wing cracks on the superjumbos, according to the Mideast carrier's top executive.

Dubai's Jebel Ali Free Zone, or Jafza, is in advanced talks to refinance a AED7.5 billion Islamic bond due in November, the chairman of the free zone's parent company said Monday.

Qatar on Monday signed an asset management deal with a private equity unit of U.K.-based Barclays, an agreement that will see the wealthy Gulf state co-invest $250 million, and one that reflects its broader push into commodities investing.

Barclays expects 2012 to be a "decent" year for bond and sukuk issuance in the Middle East, likely on par with 2011, but is more upbeat long term as regional companies shun under pressure European banks in favour of other sources of debt, the U.K. lender's regional chief executive said Monday.

A plan to spin off Royal Bank of Scotland Group global mergers and acquisitions division into a boutique operation, in which the majority state-owned lender may hold a stake, could be finalised by the end of the year, said Simon Penney, chief executive of RBS in the Middle East and Africa.

Katara Hospitality, formerly known as Qatar National Hotels Co., plans to acquire more hotels in Europe and the U.S. as it eyes expansion in the international tourism industry, according to the company's top executive.

-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

01-05-12 0540GMT