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GCC stocks rise, Riyadh ups momentum

GCC stocks moved higher last week, as Saudi stocks continued to build up momentum for the third consecutive week. Global GCC Large Cap. 30 Index added 1.18 percent in weekly gains, to close at 408.69 points. Global GCC Investable-100 Index was also up, reflecting the trend. It reported a weekly gain of 0.90 percent, to end the week at 342.20 points. Market capitalization of the region stood at $822.17bn (adjusted for cross-listed companies) at the end of the week. Trading activity increased this week. Volume of shares traded increased by 9.58 percent, with 5.1bn shares exchanged. Subsequently, value of shares traded increased by 26.15 percent, aggregating to $18.55bn.

Oil prices hovered near eight-week lows on Thursday as the economic slump outweighed potential threats to supplies. The energy markets have fallen in recent weeks despite approaching storms, with many investors thinking that credit might be tightening so much as to stifle growth. Also summer peak driving and air-conditioning season, putting pressure on the price, is nearing an end. NYMEX Crude price was trading at $69.38 per barrel in electronic trading on Thursday afternoon, down by $3.15 for the week.

On the IPO front, Kuwait-based Al Mazaya Holding Company is preparing to launch a 49% IPO for its new unit in Qatar called Mazaya Qatar. Al Mazaya Holding Company will have 20 percent stake and will manage the new firm and develop its projects while the rest will be offered to Qatari investors.

Saudi Arabia's Capital Market Authority (CMA) reported that the total value of 62 initial public offerings launched in 2006 amounted to SR28bn ($7.46bn). Dr. Abdul Rahman Al-Tuwaijeri, CMA's chairman, said in its first annual report that the number of IPOs recorded last year was the largest since its inception in 2004. The report indicated that CMA approved 40 IPOs raising SR12bn ($3.2bn) from the middle of 2004 until the end of 2005.

Kuwait
Kuwaiti stocks continued its downward trend for the second consecutive week. Global General Index ended the week at 386.91 points down by 0.08 percent. Market breadth was skewed towards declining stocks with 81 decliners, and 56 advancers. Volume and value of shares traded soared by 24.66 percent and 32.89 percent respectively. Real Estate sector hogged the limelight, accounting for 49.01 percent of the volume traded this week with 888.72mn shares changing hands. The sector also came on top of the value list with KD268.99mn, accounting for 37.54 percent of the total traded value. Kuwait Real Estate Company was the most traded scrip for the week, with 187.44mn shares traded or 19.33 percent of the total traded volume for the week. The scrip ended the week 8.85 percent higher, closing at KD0.246. Automated Systems Co. topped this week's gainers list, up 45.10 percent, to end at 740fils. Meanwhile, Sanam Real Estate Co. recorded the steepest decline of 8.06 percent to close at 285fils. Market capitalization of KSE stood at $181.32bn by the end of the week.

In the News:
National Real Estate Company won back Al-Watiya Shopping Mall after winning a court ruling against Kuwait's Ministry of Finance. In June, Kuwaiti court overruled a finance ministry decision to cancel the build, operate and transfer agreement for the Wataniya and Watiya shopping complexes. Kuwait and Gulf Link Transportation Company announced that its wholly owned subsidiary KGL Transportation Company won a tender worth KD10mn for the right to operate a general network communications company in Sharjah (UAE). Mushrif Trading and Contracting Company signed a subscription and warranty agreement with Gulf Consortium 2 LLC (UAE) to subscribe for the entire 30mn new shares issued by Mushrif at a price of KD0.900 (100fils pare value and 800fils in share premium). Mushrif's paid up capital will increase from KD3mn to KD6mn after the subscription is completed. National Bank of Kuwait plans to set up a KD30mn banking affiliate in Syria. NBK would hold 49 percent of the new lender providing commercial banking services. Commercial Bank of Kuwait is in its final stages to sell its stake in Bank of Bahrain & Kuwait . Commercial Bank owns 20.17 percent in the Bahraini bank. Negotiations are in their final stages, but no agreement has been signed yet, as per a statement issued by Commercial Bank of Kuwait .

Bahrain
Bahraini market ended the week on a higher note, buoyed by positive news on the economic front. Bahrain's real economic growth rose 7.1 percent in 2006 mainly due to gains in the non-oil sector. Mr. Rashid Al Marraj, Central Bank of Bahrain's Governor indicated that high oil prices did have a helping hand in the growth, but the progress of Bahrain's economy was equally due to the economic and structural reforms the country has witnessed in the past few years. Market's heavy-weights played a major role in pushing both banking and services indices to a higher close, reporting 2.31 percent and 1.32 percent respectively in weekly gains. Share price of Ahli United Bank soared by 3.57 percent, to close at $1.45. Meanwhile, in services sector, Bahrain Telecommunications Co. ended the week 2.33 percent higher, at BD1.01. Volume and value traded in BSE during the week decreased by 89.94 percent and 93.69 percent respectively. Market capitalization of BSE stood at $27.03bn by the end of the week.

In the News:
Al Salam Bank announced that it is considering to list its shares on another GCC stock market. Bahrain Telecommunications Company signed GPRS roaming agreements with several companies, such as Orange (France), TMN (Portugal), TIM Italy, Rogers Wireless (Canada) and T-Mobile (USA) to allow customers with GPRS/MMS enabled handsets to make use of the services.

Noor Financial Investment Company signed a contract with Shamil Bank to acquire 19 percent stake (71,818,040 shares) of Meezan Bank (Pakistan) at a price of KD10.7mn. Noor's stake in Meezan bank will be 35 percent after the transaction is completed.

Qatar
After five weeks of subdued trend, DSM staged a remarkable rally last week with all four sectors ending the week on a positive note. Global Qatari General Index reached 531.11 points, up 1.46 percent. This recent upturn in DSM fortune, signals that investors' confidence might be increasing. Volumes of shares traded during the week declined by 12.31 percent reaching 27.92mn shares. Value of shares traded on the exchange registered an increase of 7.78 percent to reach $221.76mn. Market breadth was tilted in favor of gainers this week, with 23 advancers against 13 stocks declining. Among sectoral indices, Global Insurance Index was the biggest gainer with an increase of 2.37 percent pushed by 13.12 percent increase in Qatar General Insurance & Reinsurance, being the biggest gainer among insurance companies for this week. Meanwhile, Manaai Corporation continued to edge higher, adding 60.64 percent in weekly gains, to close at QR135.10. On the negative side, Qatar Cinema and Film Distribution recorded the steepest decline this week, shedding 6.60 percent to close at QR43.90. Market capitalization of the Qatari market reached $73.50bn by the end of the week.

In the News:
First Finance Company will sign a $50mn loan agreement with a group of banks to finance its activities. The company is also planning to expand its operations through an investment portfolio pending the approval of the Central Bank.

Qatar General Insurance and Reinsurance Company established a QR10mn capital Takaful subsidiary. Qatar Telecommunications subsidiary, Asia Cell Communications (Iraq) announced its plan to buy the Iraqi operations owned, Orascom Telecom Holding.

Saudi Arabia
Saudi stocks continued to build up momentum for the third consecutive week, with Tadawul All Share Index adding 2.38 percent in weekly gains, to close at 8,089.09 points. All sectoral indices ended the week on a higher note, barring electricity index, that closed unchanged. Insurance index maintained its upward trend, as nine out of the ten listed insurance stocks ended the week in positive territory. Newly listed Ahli Takaful Company soared by 46.01 percent, to end at SR160.25. Medgulf Insurance Company was also a prominent gainer this week, up 20.89 percent. Volume and value traded increased by 11.78 percent and 27.81 percent respectively. Market capitalization stood at $366.29bn by the end of the week. Meanwhile, advancers outpaced decliners by 76 to 16.

In the News:
Capital Market Authority approved Arabian Cement Company's <3010.SE> capital increase from SR600mn to SR1.1bn through a SR500mn rights issue. The price and number of shares issued will be announced at a later stage.

Arabian Pipes Company <2200.SE> signed a SR39mn contract to supply Qatar Petroleum with ERW steel pipes.

National Shipping Company of Saudi Arabia <4030.SE> announced that its subsidiary National Chemical Carriers has signed a SR436mn loan agreement with the Public Investment Fund to finance the purchase of 4 chemical transporters.

Taiba Holding Company <4090.SE> announced that two of its subsidiaries plan to offer 30 percent of their shares in an IPO to the public. Al Aqeeq Real Estate Development Company and Arab Resort Areas Company will offer 90mn shares and 15mn shares at par respectively.

Food Products Company <2100.SE> announced that it has failed to reach an agreement to merge with National Industry for Mineral Water (HANA).

UAE
UAE markets remained bearish this week as NBAD Index slipped by 0.62 percent to reach 10,697.84 points. Market breadth was skewed towards losing stocks, with 50 decliners against 25 advancers. Most of sectoral indices ended the week on a negative note. Insurance sector was the sole gainer adding 1.03 percent. The major gainers in this sector were, Al Buhaira National Insurance Co. (14.4 percent) and Sharjah Insurance Co. (9.5 percent).Volume of shares traded on the bourses marginally decreased by 0.98 percent. Meanwhile, value of shares traded increased by 10.16 percent. Market capitalization of the UAE markets ended the week at $158.42bn.

In the News:
Abu Dhabi National Energy Company acquired Pioneer Canada for a price of $540mn. This deal will provide the company with more than 10,000 barrels of energy per day.

Emirates Driving Company has been awarded the ISO 9001-2000 certificate on August 15, 2007.

EGM of Aabar Petroleum Investments will meet on August 26, 2007 to discuss the change of the company's name to Aabar Energy PJSC, and issuance of Sukuks or convertible bonds.

RAK Ceramics partnered with RAK Investment Authority to set up a AED5mn company that will establish, own and manage properties and land and act as intermediary in the sale and purchase of these properties. The company will contribute with a 50% stake.

Emaar Properties ' wholly owned subsidiary, Emaar Morocco, has completed the plan for its Tinja resort project in Tangiers as part of the MAD43.5bn memorandum of understanding the company signed last year with the Moroccan government.

Shares of Deyaar Development Company will start trading on Dubai Financial Market starting September 5, 2007.

Oman
Omani stocks continued to head further down, as Galfar's IPO continued. MSM General Index dropped by 1.41 percent, to end the week at 6,607.26 points. All three sectoral indices landed in red. Banking and Investment Index witnessed the steepest decline this week, as it shed 2.05 percent. Bank Muscat declined by 1.25 percent this week, to close at OR1.422. Meanwhile, share price of Gulf Mushroom Products appreciated by a whopping 109.27 percent to reach OR0.316. Volume and value traded increased by 20.14 percent and 6.94 percent respectively. Out of the 68 stocks traded in MSM during the week, 37 were decliners and 15 were advancers. Market capitalization of the MSM stood at $15.60bn by the end of the week.

In the News:
Oman Fisheries signed an OR1mn contract with Bank Muscat and Vision Investment Services Company to manage the company's portfolio of shares traded on Muscat Stock Market.

Oman National Engineering and Investment Company has been granted an OR560.17mn tender with expectations to realize profits.

Shares of Qatar & Oman Investment ( QOIC ) will be listed on MSM on September 2, 2007.

Renaissance Services signed $37mn finance facilities with Bank Muscat and Bank Dhofar to be invested in the company's subsidiary Topaz Energy and Marine LTD.

© Arab Times 2007