30 October 2007
Summary
GCC stocks continued to edge higher for the sixth consecutive week. Global GCC Large Cap. 30 Index added 3.42 percent in weekly gains, to close at 443.93 points. Global GCC Investable-100 Index was also up, reflecting the trend. It reported a weekly gain of 2.15 percent, to end the week at 369.16 points. Market capitalization of the region stood at US$898.31bn (adjusted for cross-listed companies) at the end of the week. The region as a whole saw 9.84bn shares (+15.10 percent) changing hands this week, at a value of US$19.88bn (+47.25 percent). Market breadth was titled in favour of advancing stocks, with 245 advancers and 128 decliners .  Oil prices surged to new record highs due to ongoing worries over tightening supplies ahead of the winter season and escalating Middle East tensions. During the week, the US announced is imposing new sanctions on Iran, including designating the Quds Force of the international arm of the Revolutionary Guards a supporter of terrorism. NYMEX Crude price was trading at US$91.87 per barrel in electronic trading on Thursday afternoon, up by US$4.29 for the week.

The HSBC Gulf Business Confidence Index, has found the prevailing strong optimism among Gulf businesses remains in place in the third quarter of 2007. HSBC surveyed 1014 business people in the si x countries of the GCC in September 2007. Respondents represented a broad range of industries, and ranged in seniority from CEOs to middle management levels. The third quarter results show a strong correlation to the first and second quarters, with the prevailing mood of business in the region once again being one of expansion and growth. Among the key findings are: 71% expect revenue to grow in the next three months, 57% expect profits to increase by more than 5% this year compared to 2006, with 22% predicting profits growth of over 15% A growing number predict they will hire more staff in the next 12 months Over half (53%) cite an expanding market as being the prime driver of business growth (up slightly from Q2 = 51%)

Kuwait
Kuwaiti stock market ended the week on a lower note, as the market benchmark indices marginally slipped. "Global" General Index shed 0.31 percent for the week closing at 401.28 points. Market breadth was skewed towards declining stocks with 78 decliners and 52 advancers. Trading activity increased this week, as compared with the previous week, which was shortened to three sessions only due to Eid holiday. Volume and value of shares traded on the bourse grew by 71.43 percent and 93.52 percent respectively. Sectoral performance was mixed, with five sectors ending the week on a lower note. Industrial stocks made up for last week's losses, with Global Industrial Index registering the highest gains amongst sectoral indices. The index added 2.37 percent in weekly gains, on the back of buying interest witnessed on heavy-weight National Industries Group (Holding). Investors exchanged 44.71mn of the company's shares, at an aggregate value of US$294.6mn. The scrip ended the week 5.49 percent higher, at KD1.920. Non-Kuwaiti index was also a notable gainer, up 1.20 percent. Bahrain-based Gulf Finance House ended the week 4.35 percent higher, reaching KD0.720. On the other hand, Global Insurance Index registered the steepest decline, down 1.60 percent. All seven insurance stocks either ended the week on a lower note or unchanged. Share prices of Kuwait Re-Insurance Company and Gulf Insurance Company were down 3.64 percent and 3.57 percent respectively. Market capitalization of KSE stood at US$194.12bn by the end of the week.

In the News
Mobile Telecommunications Company (ZAIN) will buy a Ghanaian operator for US$120mn. Zain has agreed to by 75 percent of Western Telesystems Ltd. from the Ghanaian government through its Celtel unit, and will list some of its shares on the Ghanaian stock exchange.

Commercial Bank of Kuwait reached a deal to sell its 20.17 percent stake in Bahrain-based lender Bank of Bahrain and Kuwait for 530fils per share.

National Industries Group Holding is considering a capital increase of up to KD200mn, as announced by Chairman Mr. Saad Al-Saada. The subject is still under study and not finalized yet. The company is planning to invest KD800mn to KD1bn to fund growth.

National Mobile Telecommunications Company (Wataniya) won Israeli frequencies to operate in the Palestinian territories.

Combined Group Company signed an accord to construct the infrastructure of an industrial zone for small and medium manufacturers in Qatar.

Bahrain
Bahraini stocks continued to move higher, with Global Bahraini Stocks Index reaching an intra-week high of 203.85 points, before it lost momentum gradually towards the end of the week. Nonetheless, the index recorded 0.24 percent in weekly gains, ending at 203.03 points. This week's advance came on the back of a 2.51 percent gains registered by the Investment index. Arab Banking Corporation and Al-Khaleej Development Company topped this week's gainers' list, up 9.50 percent and 8.61 percent respectively. Meanwhile, profit-taking drove services stocks to a lower close. The Services index shed 1.94 percent this week. Heavy-weight Bahrain Telecommunications Company (Batelco) ended the week down by 3.33 percent, at BD1.015. Banking index was also a notable decliner, down 1.36 percent. Bank of Bahrain and Kuwait and Bahrain Middle East Bank shed 9.57 percent and 4 percent respectively. Volume and value of shares traded in BSE during the week stood at 14.41mn shares (+112.95%) and US$11.77mn (+21.34%) respectively. Market breadth was skewed towards advancing stocks, with 15 advancers and only 7 decliners. Market capitalization of BSE stood at US$27.61bn by the end of the week.

In the News
Al Khaleej Development Company signed a usufruct contract with the Ministry of Industry and Commerce(Bahrain) to benefit from a 170 hectares land at the Bahraini port.

Bahrain Islamic Bank signed a memorandum of understanding with Landmark Bahrain Real Estate Development Marketing to provide Islamic finance services to clients.

Esterad Investment Company announced that its subsidiary, Esterad MarocInvest, has sold its stake in Hyper S.A Label Vie (Morocco) for the amount of BD2.76mn, realizing a 184% profit.

Gulf Finance House announced that it has raised over US$630mn from investors across the Gulf as equity to fund the infrastructural development of Energy City India. The equity was underwritten by Kuwait Investment Company (KIC) .

Qatar
Qatari market ended the week on a higher note, with Global Qatari General Index growing by 0.90 percent to close at 637.96 points. Global Services Index maintained its positive performance this week and registered the biggest gain of 2 percent as three stocks from the sector were on the top gainers list. Gulf Warehousing Company was a major gainer, adding 55.25 percent. Also, Group for Medical Care and National Leasing Company were among the top gainers with 13.29 and 11.51 percent increase in price respectively. Global Industrial Index posted the second highest gain of 0.84 percent this week. Qatari German for Medical Devices led the gainers of this sector and was on the top gainers list with 27.31 percent increase in its stock price. The scrip ended the week at QR28.90.

Global Banking & Financial Institutions Index was also up by 0.45 percent. Al Khalij Commercial Bank was the biggest gainer within the sector, adding 5.56 percent. The bank is in advanced negotiations to buy the assets of BLC Bank in the UAE which has branches in the Emirates of Abu Dhabi, Dubai, Ras Al Khaimah, and Sharjah. The deal marks the beginning of Al Khaliji's planned expansion across the Gulf. Selling pressure drove share price of Rayan Bank to a lower close. Investors exchanged 44.88mn of the bank's shares for an aggregate value of US$260.41mn. The scrip ended the week down by 0.47 percent. Global Insurance Index was the only sector with negative performance this week as it closed down by 2.72 percent. Qatar Insurance ended the week on a lower note as it registered losses of 4.93 percent to be on the top losers list. Market capitalization of the Qatari market reached US$88.33bn by the end of the week.

In the News
AGM of Salam International Investment Company approved the proposal to increase the company's stake in its subsidiary, Salam Bunyan Real Estate Company, to 50 percent. Al Khalij Commercial Bank announced that it is negotiating the acquisition of BLC Bank in UAE. Barwa Real Estate Company signed a US$800mn murabaha deal to finance its future projects and investments.

Saudi Arabia
Saudi stocks continued to edge higher, as Tadawul All Share Index managed to rise above the 8,000 points level. The index conclude the week 3.75 percent higher, at 8,209.23 points. All sectoral indices managed to eke out some gains. Insurance Index registered 11.89 percent in weekly gains. All insurance stocks ended the week on a positive note, except SABB Takaful that ended the week down 18.24 percent. Meanwhile, share price of Saudi United Cooperative Insurance Company appreciated by 35.71 percent this week, and ended at SR66.50. Agricultural index was also a notable gainer, up 9.7 percent. Ash-Sharqiyah Agricultural Development Co. and Saudi Fisheries were up 14.73 percent and 12.50 percent respectively. Volume and value of shares traded in Saudi market increased by 88.47 percent and 59.90 percent respectively. Market capitalization stood at US$370.38bn by the end of the week. Meanwhile, advancers outpaced decliners by 90 to 8.

In the News
Arabian Cement Company <3010.SE> announced that it will establish a cement plant in Jordan effective October 21, 2007. The plant will start operations in September 2009.

Bank Al Jazira <1020.SE> announced that it is planning to acquire 51 percent stake in National Installment Company.

Saudi Basic Industries Corporation <2010.SE> planning two petrochemical projects in China at a combined cost of SR7.5bn (US$2bn).

BOD of Saudi Telecommunications Company <7010.SE> approved the distribution of SR2.5mn cash dividend for the third quarter of 2007 (SR1.25 per share).

UAE
UAE markets continued to surge for the fifth consecutive week, with the market's bench-mark index reporting the highest weekly gain amongst its GCC peers. NBAD Index added 6.67 percent in weekly gains, and closed at 12,973.98 points. This is the highest level the index reached since 26/04/2007. All three sectoral indices had positive performance as well, with Services index in the lead, up 8.81 percent. Qatar-based Al Salam International Company topped this week's gainers list, up 31.80 percent, at AED15.75. Abu Dhabi Ship Building Co. and Amlak Finance were also notable gainers, up 20.70 percent and 19.62 percent respectively. On the negative side, share price of Ras Al Khaimah Cement Co. dropped by 5.29 percent, to close at AED2.15. Volume of shares traded in UAE decreased by 0.48 percent, while value of shares traded increased by 17.54 percent. Market capitalization of the UAE markets ended the week at US$198.80bn.

In the News
Emirates Telecommunications Corporation acquired an additional share of 17 percent in Zanzibar Telecom Limited - Zantel. Etisalat's stake in the company increased to 51 percent.

Dana Gas announced that it will increase the offering of the Sukuk by US$125mn to US$1bn in order to meet the high demand from international investors.

National Corporation for Tourism and Hotels announced that it will develop a 5-stars hotel at a cost of AED1bn on two parcels of land acquired on September 9, 2007. The project is part of the City Center project in Abu Dhabi.

ALDAR Properties announced that it has received the approval of the SCA to increase its capital by AED 22,225,804 through the conversion of Sukuks. The increase will be effective starting October 28, 2007. Oasis Capital Company reached a preliminary agreement to acquire a 42.5% stake in Addax Bank (Bahrain).

Oman
MSM continued to soar to new levels, with MSM General Index reaching a new record-high of 7,942.94 points, up 0.44 percent for the week. The index lost momentum during the week, but managed to pull back up on the last trading day of the week.. All sectoral indices managed to eke out some gains.

Industrial Index came in the lead, up 3.19 percent. This week witnessed the listing of Galfar Engineering & Contracting Company. The scrip was listed in the parallel market on October 24th. Buying interest was clearly observed on shares on the newly listed company, as investors exchanged 15.49mn of Galfar Engineering & Contracting company's shares, at an aggregate value of US$40.56mn. The scrip ended the week at OR1.005, up 3.18 percent from the closing of the first day of listing. Volume and value of shares traded in MSM stood at 31.68mn (-50.93%) and US$63.96mn (-51.84%) respectively. Out of the 59 stocks traded in MSM during the week, 36 were advancers and only 12 were decliners. Market capitalization of the MSM stood at US$19.07bn by the end of the week.

In the News
EGM of Al Jazeera Steel Products Company approved to increase the company's capital to OR12.6mn by allocating 63.7mn shares to the Global Buyout Fund LP through a private placement at a price of OR0.325 per share.

EGM of Salalah Mills Company will be held on 3 January, 2008 to discuss the increase in authorized capital from OR2.5mn to OR7mn.

BOD Taageer Finance Company is exploring the possibility of participating as investor and technical advisor for a new NBFC being set up in Saudi Arabia, along with an international financial institution, local Saudi business house and a local Saudi commercial bank.. Oman and Emirates Investment Holding Company sold the 28.82 percent stake which it acquired on September 17, 2007 in Oman Hotels and Tourism Co to local investors. The stake of the company now is reverted back to 31.02 percent in Oman Hotels and Tourism Co .

© Arab Times 2007