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Feb 14 2012

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MIDEAST MORNING BRIEFING: Gulf Mkts Seen Mixed; Focus On Aldar

Saudi SE               6831.56              +0.42% 
Dubai FM               1521.56              +2.19% 
Abu Dhabi SM           2466.03              +0.40% 
Kuwait SE              5946.00              +0.71% 
Doha SM                8694.77              +0.09% 
Muscat SM              5589.07              -0.22% 
Bahrain SE             1143.11              +0.38% 
Cairo SE               5099.36              +4.22% 
Amman                  1968.91              -0.15% 

ICE Brent $/bbl         118.26              +0.81% 
Gold $/troy oz         1729.30              -0.08% 
Euro-USD                  1.32              -0.15% 
DJIA                  12874.04              +0.57% 

 

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen mixed Tuesday as investors adopt a cautious view on Europe's debt woes after Moody's Investors Services downgraded several euro-zone nations.

In the region, Abu Dhabi-based Aldar Properties will likely grab investor attention after swinging to a profit in 2011, from a big loss in the previous year due to asset writedowns.

Asian stocks were modestly lower Tuesday after Moody's downgraded its ratings on six European nations including Spain and Italy, and warned that its top ratings on Austria, France and the U.K. could be at risk, citing the weakening prospects for an overhaul in Europe.

Oil prices were slightly lower Tuesday with Nymex March crude futures last down 40 cents at $100.51 a barrel.

U.A.E.: Abu Dhabi's market rose 0.4% to 2466.03 Monday.

Aldar Properties said Monday it swung to a full-year 2011 net profit of AED642.5 million, from a loss of AED12.66 billion in the previous year, boosted by land sales and recurring revenue from investment properties, hotels and schools. The company has recommended a cash dividend of AED0.05 per share for 2011. Aldar shares closed flat at AED1.01 Monday.

Abu Dhabi Islamic Bank Tuesday said fourth-quarter net profit almost doubled to AED216.2 million as provisions and impairments declined.

Dubai shares finished +2.2% at 1521.56 Monday; the market is now up 17% since hitting a multi-year low in mid-January.

Real estate stocks were among the top risers; Union Properties surged 15% to AED0.345 and Deyaar +14.7% at AED0.273.

Monday's rally in Deyaar and Union Properties was due to the market beginning to see value in the U.A.E. real estate sector, said one analyst at Global Investment House.

"Overall the markets in the GCC region have been very undervalued and real estate equities have been way underpriced in an unjustifiable way so the market is now repositioning itself," said Mostafa El-Maghraby. The whole market is moving and investors are beginning to realise there is some value in real estate, he added.

Shuaa Capital soared 13.4% to AED0.769 Monday; the investment bank's fourth-quarter loss narrowed, compared with the year earlier, as it trimmed expenses.

Drake & Scull International shares were up 1.2% at AED0.97; the company said it posted a 36% year-on-year rise in full year net profit.

Emaar Properties said Monday it plans to expand its flagship asset, The Dubai Mall, by over 1 million square feet, from the existing 12 million square feet development, to include more retail outlets and hotel rooms.

SAUDI ARABIA: The Tadawul market ended +0.4% at 6831.56 Monday; propped up by petchem and bank stocks.

The market was expected to rise on the back of positive global sentiment, a Riydh-based trader said. He noted that volumes remain high, however most of the action is still centered in speculative names. The trader reckons technically the market is trying to consolidate above the 6700 mark to make a push for 7000.

Saudi Arabia imposed Monday a full ban on cement and clinker exports to meet the rapid rise in domestic demand, the trade ministry said.

KUWAIT: The market finished +0.7% at 5946 Monday; it is up 2.3% for the year.

Zain posted a 2011 net profit of $1.03 billion dollars, compared to $1.02 billion in the previous year, the state-run Kuwait News Agency, or Kuna, reported late Monday.

Boubyan Petrochemical Co., or BPC, Monday said it expects to receive a combined cash dividend of about $90 million for its 9% stake in each of the two local firms, Equate Petrochemical Co. and The Kuwait Olefins Co.

QATAR: The market is closed Tuesday for a public holiday and will resume trading on Wednesday. Qatar is celebrating its first ever National Sports Day on Feb. 14.

BAHRAIN: The main gauge of stocks ended up 0.4% at 1143.11 Monday; supported by the industry sector.

OMAN: Muscat's market closed down 0.2% at 5589.07 Monday; undermined by financial stocks.

EGYPT: The market closed 4.2% higher at 5099.36 Monday; the benchmark EGX 30 Index is now up about 41% this year, after falling some 49% in 2011.

The market has rallied this year on bargain buying amid rising investor hopes for a more stable political environment, after Egypt's first post-Mubarak parliamentary elections and the one-year anniversary of the uprising passed mostly peacefully. Former President Mubarak stepped down on Feb. 11, 2011, after 18 days of protests.

Orascom Telecom Media and Technology Holding shares rallied 9.9% to EGP1.44; France Telecom said Monday it is in advanced discussions with OTMT to increase its stake in their Egyptian telecom joint venture Mobinil, a deal which could be worth up to EUR1.5 billion. Mobinil shares ended limit up 10% at EGP137.89.

NEWS FROM AROUND THE GULF: Qatar will build a $5.5 billion petrochemical plant in the northern industrial city of Ras Laffan by 2018, as the Gulf state steps up investment to utilize its huge gas reserves.

Kuwait Central Bank Governor Sheikh Salem AbdelAziz al Sabah, confirmed his resignation Monday citing rising government expenditure and local economic challenges as handicaps to the bank's ability to carry out its responsibilities.

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

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

14-02-12 0524GMT