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Feb 05 2012

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MIDEAST MORNING BRIEFING: US Rally To Support Gulf Mkts; Focus On 4Q

Saudi SE              6733.68               +1.05% 
Dubai FM              1435.96               -1.21% 
Abu Dhabi SM          2476.62               +0.43% 
Kuwait SE             5856.40               -0.22% 
Doha SM               8636.37               +0.77% 
Muscat SM             5564.09               +0.06% 
Bahrain SE            1136.59               -0.02% 
Cairo SE              4584.39               -2.22% 
Amman                 1945.00               -0.30% 

ICE Brent $/bbl        114.58               +2.24% 
Gold $/troy oz        1740.30               -1.24% 
Euro-USD                 1.32               +0.15% 
DJIA                 12862.23               +1.23% 

 

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen higher Sunday as investors track a Wall Street rally on the back of better than expected U.S. economic data.

Global confidence is showing further signs of improvement as financial market headwinds have eased somewhat. Fourth-quarter company earnings will continue to drive volumes in the near term, traders say.

Regional investors will however remain a tad cautious, after some recent gains, and ahead of the international week starting Monday. Europe's debt problems remain unresolved with Greece's deal with international creditors on a EUR130 billion second bailout package yet to be reached.

Oil prices rose sharply Friday after the U.S. government said unemployment fell last month, boosting expectations that demand from the world's biggest oil consumer will improve. Nymex march crude futures settled 1.5% higher at $97.84 a barrel.

U.A.E.: Dubai's market ended -1.2% at 1435.96 Thursday; bank stocks dragged.

Dubai Islamic Bank fell 4.1% to AED2.1 after the lender Thursday reported a full-year net profit of AED1.01 billion, up 25% on year, and said it would pay a 15% cash dividend.

Mashreq Bank ended -9.9% at AED91.45 on two trades totaling about 17,000 shares, after the lender said Thursday full-year net profit rose 2% on year to AED820 million.

Union Properties ended -9.8% at AED0.284; the real estate company said Thursday its full year net loss widened to AED1.57 billion, from AED1.53 billion a year earlier.

Aramex Thursday posted a 4% increase in net profit to AED57.2 million in the fourth quarter of 2011 versus AED55 million a year earlier, aided by strong economic growth in the GCC countries.

Abu Dhabi's market finished up 0.4% at 2476.62 Thursday; supported by bank stocks.

Etisalat, the Middle East's biggest telecom provider by market value, said Thursday it may sell the mobile phone towers it owns in Africa and consider infrastructure sharing with other operators.

SAUDI ARABIA: The Tadawul market ended +1.1% at 6733.68 Saturday; bank stocks led the advance. Volumes hit a multi-year high as the benchmark index closed in positive territory for the ninth straight session.

Speculative cash is shifting from other asset classes to the stock market as investors bet on valuations, and on the bourse opening up to foreign investors this year, a trader said. Market sentiment was further buoyed by global equity strength.

KUWAIT: The market reopens for trading Sunday after a long weekend. It was closed Thursday for the Prophet's birthday holiday.

QATAR: Doha's benchmark index finished +0.8% at 8636.37 Thursday; led by the banking and industry sectors.

BAHRAIN: The market is closed Sunday for the Prophet's birthday holiday. Trading will resume on Monday.

OMAN: The market is closed Sunday for the prophet's birthday holiday. Trading will resume on Monday.

EGYPT: The market is closed Sunday for the Prophet's birthday holiday. Trading will resume on Monday.

Egypt's Central Bank kept interest rates at their current level Thursday in an attempt to ease pressure on the currency and control rising inflation, economists said.

NEWS FROM AROUND THE GULF: Saudi officials told International Monetary Fund Managing Director Christine Lagarde that they want a greater share of voting rights at the Fund in exchange for providing financial help, an official from the kingdom familiar with the matter said Friday.

Qatar, the world's largest exporter of liquefied natural gas, is drawing up a contingency plan to close down its vast LNG facilities in an emergency, if Iran carries out recent threats to close the strategic Strait of Hormuz, a senior oil official in the emirate said Thursday.

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

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

05-02-12 0456GMT