Thursday, Aug 23, 2007
By Nikhil Lohade
Of DOW JONES NEWSWIRES
DUBAI (Zawya Dow Jones)--U.A.E investors saw a flurry of activity on stock markets in Abu Dhabi and Dubai for a second consecutive session Thursday. Shares in both markets surged upwards, recovering Wednesday's sharp falls.
A strong Dubai market led four out of five Gulf stock markets higher, with only Bahrain ending in the red.
"Investors in Dubai and Abu Dhabi were bargain hunting after an exaggerated fall Wednesday," said Ganesh Mani, an analyst at Waves Investments. "Nothing has changed fundamentally from Wednesday."
Gains were seen across the market, especially in stocks that fell heavily in the past few sessions, Mani said.
Heavyweight Emaar Properties, the region's largest real estate developer by market value, led the gains in Dubai after dragging U.A.E markets lower Wednesday. Concerns over its U.S. operations compounded negative sentiment over lower than expected profit and a lack of clarity on its land for shares deal with Dubai Holding.
U.A.E: Institutional buying helped Dubai shares recover Wednesday's losses, surging 4.5% to 4147.48 at close, led by Emaar Properties, up 5.6% to AED10.30. The market closed down 3.5% Wednesday.
"Institutions triggered a recovery in the Dubai market after it fell in the previous six sessions," said Ramy Samy, trading and operations manager at Pioneer Securities.
"Stocks were attractively priced after Wednesday's sharp fall and big investors were out shopping for bargain deals across the market," he added.
Energy shares led Abu Dhabi market up 2.5% to 3411.11 at close, bolstered by gains in real estate and bank stocks. The market had closed lower over the previous eight sessions, losing 2% Wednesday. Heavyweight Etisalat jumped 2.6% to AED17.50.
"Investors, led by institutions, were looking for bargain deals after panic selling Wednesday dragged the market down, especially real estate stocks. This is more of a correction on the upside after recent weakness and doesn't indicate a turn around as sentiment remains weak," said one Abu Dhabi-based trader.
Abu Dhabi National Energy Co., or TAQA, recovered from an early fall to end up 4.2% to AED2.72 after the company said it would buy oil and gas explorer Pioneer Canada for $540 million as part of the company's strategy to expand its North America operations.
QATAR: Doha shares recovered from an early fall to end up 0.3% to 7507.69, led by banks.
"The market closed above 7500, an important psychological level. It has buying support at 7470, its 10-day moving average," said one Dubai-based analyst.
Qatar National Bank closed higher by 1.1% to QAR210 and Doha Bank rose 0.8% to QAR83.50. Heavyweight Industry Qatar pared gains, down 0.6% to QAR108.80.
BAHRAIN: Bahrain Telecommunications, or Batelco, led the market down 0.5% to 2538.85 at close.
OMAN: Muscat stocks were up 0.5% to 6607.26 at close, led by banks.
-By Nikhil Lohade, Dow Jones Newswires, +9714 3644963, nikhil.lohade@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
23-08-07 1135GMT
