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DUBAI, Oct 23 (Reuters) - EeSaudi Arabia's stock index
.TASI
may extend gains on Sunday as last week's $17.5 billion bond sale buoys investor optimism despite some weak quarterly results, while a slightly improved global environment could support other Gulf markets.
Just over two-thirds of Saudi Arabia's listed companies have so far reported, with generally lower earnings and a few companies missing analysts' estimates by a wide margin. But the banking sector, which rallied after Saudi Arabia conducted the largest ever emerging market international bond sale, may have further to add despite generally weaker results.
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Mohamed Eljamal, managing director of capital markets at Abu Dhabi's Waha Capital, said a number of banks are trading at a significant discount to book value, offering investors attractive entry points.
"Clearly there is medium to long term value in select names," he added.
Shares in Saudi's Dar Al Arkan
4300.SE
may rise after one the kingdom's largest property developers reported a 21.4 percent rise in third-quarter net profit to 112.5 million riyals ($30.0 million), double the forecast by analysts at NCB Capital. The company attributed the rise to higher revenues from property sales and lower operating expenses, such as payroll and consultancy fees.
Dar Al Arkan had reported falling profits in seven of the preceding eight quarters.
In Dubai, few major companies have so far reported earnings. The main index
.DFMGI
, last at 3,340 points, has been trading in a narrow range in recent days but ended the week on a firmer footing on increased volumes. Investors may take their cue from a more positive tone in global equities. World stocks, as measured by MSCI's world index
.WORLD
, slipped on Friday but posted their first week of gains since September.
Technical analysts at NBAD Securities said profit taking may emerge at levels around 3,440 points if the recovery continues.
(Reporting by Celine Aswad; Editing by Richard Pullin) ((celine.aswad@thomsonreuters.com)(+9715 62247653)(Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))
Just over two-thirds of Saudi Arabia's listed companies have so far reported, with generally lower earnings and a few companies missing analysts' estimates by a wide margin. But the banking sector, which rallied after Saudi Arabia conducted the largest ever emerging market international bond sale, may have further to add despite generally weaker results.
Mohamed Eljamal, managing director of capital markets at Abu Dhabi's Waha Capital, said a number of banks are trading at a significant discount to book value, offering investors attractive entry points.
"Clearly there is medium to long term value in select names," he added.
Shares in Saudi's Dar Al Arkan
Dar Al Arkan had reported falling profits in seven of the preceding eight quarters.
In Dubai, few major companies have so far reported earnings. The main index
Technical analysts at NBAD Securities said profit taking may emerge at levels around 3,440 points if the recovery continues.
(Reporting by Celine Aswad; Editing by Richard Pullin) ((celine.aswad@thomsonreuters.com)(+9715 62247653)(Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))
