Monday, Oct 31, 2011
Saudi SE 6229.64 -0.10%
Dubai FM 1415.78 +2.60%
Abu Dhabi SM 2508.94 +1.51%
Kuwait SE 5908.50 +0.11%
Doha SM 8619.63 +0.98%
Muscat SM 5570.45 +0.13%
Bahrain SE 1150.16 0.00%
Cairo SE 4452.81 +2.60%
Amman 2004.69 +0.75%
ICE Brent $/bbl 108.64 -1.16%
Gold $/troy oz 1709.30 -3.71%
Euro-USD 1.41 +0.07%
DJIA 12231.11 +0.18%
By Brinda Darasha
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Persian Gulf stock markets are likely to trade cautiously Monday after a largely positive session Sunday, as they await further details of the euro-zone rescue proposal that had temporarily placated the markets last week.
The European resolution should, "hopefully, buy enough global comfort time until the beginning of the year," when European leaders are expected to discuss the nitty-gritty of their bailout plans, said an analyst.
Asian stock markets were lower Monday as investors were cautiously awaiting further details of the euro-zone rescue proposal.
Dow Jones Industrial Average futures were down 51 points in screen trade.
December Nymex crude oil futures were down 79 cents at $92.53 per barrel on Globex.
U.A.E.: Dubai's market Sunday ended +2.6% at 1415.78; real-estate and financial stocks soared.
Shuaa Capital in note Sunday said there's likely to be a material rally in the U.A.E. equity markets targeting a return potential of 13%-16% for the Dubai Financial Market index in the next two months. A number of indicators--including strong interest from foreign institutions, a pick-up in buying power, a European plan that should buy enough global comfort time till new year, signs of positive re-coupling among and between regional and global equity markets--point that way, it said.
Index heavyweight Emaar soared 5.8% to finish at AED2.75. The master developer Thursday posted a 34% drop in third-quarter net profit to AED406 million, down from AED612 million a year ago as sales slowed and expenses increased.
Credit Suisse said it expects Emaar Properties to post stronger fourth-quarter results than those seen in 3Q11 due to more deliveries coming online and better performance from its hotel businesses.
Other real estate and construction stocks that shone were Arabtec, up 4.5% at AED1.40 and Drake & Scull International, +5.7% at AED0.83.
Dubai Islamic Bank closed +3% at AED2.02. The bank Saturday said third-quarter net profit rose 10.5% to AED298 million from AED270 million a year earlier on sustained core revenue growth.
The Dubai Financial Market will close from Sunday, Nov. 6 until Tuesday, Nov. 8 on account of the Muslim holiday of Eid Al Adha, the bourse said.
Abu Dhabi shares closed up 1.5% at 2508.94 Sunday. Investment and property stocks paced advances.
Investment firm Waha Capital said its third-quarter net profit fell 29% to AED26.6 million from AED37.3 million in the year-ago period, following the restructuring of its leasing business amid a "challenging environment". Shares closed Sunday +3.6% at AED0.58.
Sorouh Real Estate ended a top gainer Sunday; +6.4% at AED1.03. The developer early Monday said third-quarter net profit was AED67.3 million, a 13.6% increase on the corresponding period in 2010.
The result fell short of the AED176 million that analysts at Kuwait-based Global Investment House had expected, and was below the AED88 million net profit that Bahrain's SICO Investment bank had predicted.
Aldar said early Monday it will cut its workforce by 105 people, or 24%, as part of a new strategic plan. Aldar shares closed up 3.9% at AED1.07 on the Abu Dhabi market Sunday.
SAUDI ARABIA: Saudi's Tadawul Index closed Sunday 0.1% at 6229.64.
The index recouped some of its intraday losses after profit-booking took money off the table.
Insurance stocks were among the biggest losers; Buruj Co-operative Insurance fell 10% to SAR211.50.
Focus has "shifted back to index heavyweights as talk of the market opening up heats up," said a Riyadh-based trader.
Capital Market Authority, or CMA, said Sunday it approved the initial public offering of the United Electronics Co., known as Extra, for 7.2 million shares, representing 30% of its share capital.
The CMA, said Sunday it has approved a plan by Sahara Petrochemical Co. to increase its capital via rights issue. Sahara shares closed +1.3% at SAR19.90 Sunday.
Yanbu Cement Co. said Sunday it stopped three production lines to save fuel for the trial operations of its fifth production line. Yanbu shares closed trading Sunday 0.8% down at SAR59.50.
KUWAIT: The Kuwait stock exchange ended +0.1% at 5908.50 Sunday. Investment and industrial stocks led up.
Kuwait's government has given the green light to restructure loss-making Kuwait Airways ahead of its planned privatization, which will involve selling 35% of the airline.
QATAR: Qatar's QE Index closed 1% higher at 8619.63 Sunday. Banks and industrial stocks supported.
Commercial Bank of Qatar finished +1.6% at QAR82.90 and Doha Bank was +1.4% at QAR64.70.
"The market gave a breakout on the channel resistance and is heading higher towards the 8800 levels," said CAPM investment in a note Sunday. Banking stocks will add further gains in the coming sessions, it said.
Qatar Electricity and Water Co., or QEWC, Sunday posted a 10% drop in third-quarter net profit to QAR328.2 million compared with 364.8 million posted in the year earlier period.
QEWC shares closed trading +1.2% at QAR143.
Barwa Real Estate Co. Sunday saw third-quarter net profit fall 71% as debt and obligations soared. Third-quarter net profit was QAR80.5 million compared to QAR277.2 million in the year earlier period, according to Zawya Dow Jones calculations.
Barwa shares finished trading 0.3% higher Sunday at QAR30.90.
Qatar Telecom, or Qtel, saw third-quarter net profit fall 13% to QAR567 million down from QAR652 million a year earlier, the company said Sunday, missing analyst forecasts as the company was hit by foreign exchange losses.
Analysts at EFG-Hermes had predicted a net profit of QAR814 million, while Global had forecast QAR750 million. Shares in Qtel closed up 0.3% at QAR148.4 in a broadly positive overall market.
BAHRAIN: The main gauge of stocks closed flat at 1150.16.
OMAN: Muscat's market closed +0.13% at 5570.45 Sunday.
Financial and services stocks led up.
EGYPT: The Egyptian index of shares EGX 30 closed +2.60% at 4452.81 Sunday.
A technical report from HC Securities said that while the short to medium term trend remains down, signs of a reversal are emerging, where the EGX30 could reach the 4700-5100 range in the next three months.
Mobinil led the surge Sunday; +7.3% at EGP103.05. The telco last week posted a third-quarter net profit of EGP9.7 million, down 96.5% from a year earlier due to what an analyst said were "an array of external factors" that included boycott campaigns, Ramadan, and a new corporate tax.
SYRIA: Damascus Securities Exchange, or DSE, trade sessions take place Monday, Tuesday and Wednesday.
NEWS FROM AROUND THE GULF: U.A.E. energy minister Mohamed bin Dha'en Al Hamili Monday said crude oil prices of around $80-$100 were reasonable for producers to continue expanding production capacity.
Qatar has delayed a $3 billion underground rail line planned as part of a multi-billion-dollar infrastructure upgrade in the Arab Gulf state after designs showed the project would run over-budget, several people familiar with the matter said.
Jordan's Arab Bank, the country's largest lender, posted a 12% increase in nine month net profit to $428.7 million, compared with the year earlier period.
The president of the African Development arrived in Egypt to discuss the timetable for its $1.4 billion loan to Egypt, media reports said.
-By Brinda Darasha, Dow Jones Newswires; +9714 446-1688; brinda.darasha@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
31-10-11 0544GMT
