Wednesday, Jun 13, 2007
By Sarmad Khan
Of DOW JONES NEWSWIRES
DUBAI (Zawya Dow Jones)--Five out of seven Gulf markets closed up Wednesday with Dubai leading the risers and Muscat posting gains for the second consecutive day post-cyclone Gonu that battered the country.
U.A.E: Dubai shares advanced 1.5% to 4493.61, paced by gains in Gulf Navigation Holding, which climbed 14.3%.
Wadah Taha of Emaar Financial Services said Gulf Navigation shares were "artificially hyped up" by certain investors to book quick profit.
"This is a worrying trend. Smaller investors follow a rising stock and end up losing," he said. Taha said companies with small value and an ample number of shares are being targeted by such trade.
Index heavyweight Emaar Properties gained 1.7%, while Arabtec Holding closed up 4.1%.
Dubai index is up 8.9% since the beginning of the year.
In Abu Dhabi, the index rose 0.1% to 3610.49 with market heavyweight National Bank of Abu Dhabi gaining 0.7%. Oasis International Leasing Co. rose 5.1% with a volume of 282 million shares.
Taha said some retail stocks were getting a lot of attention from investors. "There isn't any news to justify a big rise on such high volumes," he said, adding that it seems Oasis is being targeted by speculators.
Taha said the index is still trading over the 3600-level, but there is a possibility it will fall through this level Thursday.
Abu Dhabi is the best performing Gulf bourse this year, up 20.4%.
SAUDI ARABIA: The Tadawul All share Index pared intraday gains to end slightly down at 7074.19.
Mohammad Abdul Samih of Raana Investments said many big forthcoming IPOs are draining liquidity from the market. "There is selling pressure, but the index has strong support at the 7000-level," he said.
Samih said stocks with strong fundamentals are still on investors' radar.
Emaar The Economic City closed down 1.6%, while Sahara Petrochemical Co. ended up 4.2% after the company received the market regulator's approval to raise its capital 25% through a one-for-four bonus share issue.
Saudi Arabia is the worst performing Gulf bourse this year, down 10.8%.
KUWAIT: The index gained 0.6% to close at 11676.2, paced by gains in Mobile Telecommunications Co. MTC closed limit-up at KWD4.44.
A trader at National Bank of Kuwait's brokerage department said there is a correction in sight, but the general trend is upward.
"The market is trading on reasonable volumes and that trend is expected to continue," the trader said, adding that the market may see a slow down in trading during the first week of July as investors head for summer vacations.
Gulf Glass Manufacturing Co. was the biggest loser, down 7.1%.
Kuwait index has gained 16% since the start of 2007.
DOHA: The index closed down 0.2% at 7413.34 with Gulf Warehousing Co. falling 5.1%.
Dominic Beange of Dlala Brokerage said there had been little activity in index stocks over the past few sessions, but major movements were seen in non-index stocks.
"The market is expected to continue following this pattern and will maintain the current levels," he said.
Qatar Meat & Livestock Co. surged 5.9% with over 4 million shares changing hands. "This is unusual movement for this stock," Beange added.
MUSCAT: Muscat shares rose 0.9% to close at 6237.00. Majan Glass rose 7.3%, while Raysut Cement gained 2.6%
BAHRAIN: The index rose 0.6%, with Ahli United Bank leading the volume. Global investment House rose 5.6%.
-By Sarmad Khan, Dow Jones Newswires, +9714 364 4965; sarmad.khan@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
13-06-07 1401GMT
