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Tadawul index falls as KEC makes debut

JEDDAH/DUBAI: Kuwait's Agility hit a two-month high on Monday after the logistics provider said US prosecutors had moved to dismiss charges against a subsidiary.

Agility rose 5.8 percent to 0.455 dinar, its highest finish since June 2.

The stock remains down 58 percent since it was first charged with defrauding the US military in November.

Agility was subsequently banned from bidding for future US contracts. In April, the US awarded a $2.2 billion supply deal to Dubai-based ANHAM FZCO, replacing Agility. The Kuwaiti index rose 0.5 percent to 6,694 points.

"I wouldn't be surprised to see a positive move in Agility's share price if the court case is dismissed, but I doubt this will be substantial unless Agility is able to land new big contracts," said Kareem Murad, an analyst at SHUAA Capital.

"The market has priced in the end of Agility's prime vendor contract with the US military in September."

Abu Dhabi National Energy Co. (TAQA) climbed 0.8 percent after its second-quarter profit rose, but the emirate's index fell 0.6 percent, nearing a 2010 low after Aldar Properties extended declines.

The developer dropped 3.7 percent to its lowest finish since March 17, 2009.

The Abu Dhabi index fell 0.6 percent to 2,511 points.

"People are selling Aldar because of its debt overhang and less confidence about government support," said Julian Bruce, EFG-Hermes director of institutional equity sales.

On Monday, HC Research slashed its price target for Aldar to 3.80 dirhams from 9.70 dirhams.

Dubai's benchmark climbed 0.5 percent to 1,501 points, rising from Sunday's four-week low to trim its year-to-date losses to 16.8 percent.

Vyas Jayabhanu, head of investments, Al-Dhafra Financial Broker, warned the index could drop to 1,200 points in 3 to 6 months unless the government moved to support stocks.

"PE ratios are at realistic levels - the market is not over-sold," Jayabhanu adds.

Doha's index hit a seven-week closing high as Industries Qatar climbed 0.5 percent, extending gains since its quarterly earnings beat estimates.

Qatar Islamic Bank rose 0.7 percent and Qatar Gas Transport Co. ( Nakilat ) gained 1.1 percent.

"Foreign institutions have been buying into quality names likes IQ , Qatar Islamic Bank and Nakilat ," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor.

Knowledge Economic City Co. ended at SR10.30 on its Saudi bourse debut, but the Kingdom's index fell for a fourth day in five as volumes dipped ahead of the likely start of Ramadan on Wednesday.

The Tadawul All-Share Index (TASI) closed slightly down at 6,317.67 points. The sector activity for day was mixed with 7 gaining sectors and 8 losing sectors. The sector gains for the day ranged from 0.01 percent by the retail sector to 0.74 percent by the Agriculture & Food Industries sector. The losing sectors on the other hand ranged from 0.20 percent by the Media and Publishing to 1.02 percent by the Real Estate Development sector. The overall market breadth for the day was negative with 34 advancers against 81 decliners giving it an AD ratio of 0.41, the Financial Transaction House (FTH) said in its daily market commentary.

"There are mixed signals from global markets and a lot of the action is now directed at the second-tier petrochemical names," said a Riyadh-based trader who asked not to be identified. "Sipchem, which is a favorite pick of ours, and Yansab are among those to announce new capacity. They're seeing big moves and there is still buying appetite."

Saudi International Petrochemical Co. (Sipchem) fell 1.3 percent, easing from Sunday's 12-week high. Yanbu National Petrochemical Co.'s (Yansab) was unchanged.

The Oman index slipped 0.1 percent to 6,347 points. The Qatar index climbed 0.1 percent to 7,117 points.

- With input from agencies

© Arab News 2010