Monday, Sep 18, 2006


 
Saudi SE            11273.35        -0.86 
Dubai FM            449.91          -0.99% 
Abu Dhabi SM        3668.80         -0.31% 
Kuwait SE           9978.60         -0.14% 
Doha SM             7759.05         +0.06% 
Muscat SM           5310.06         -0.09% 
Bahrain SE          2242.03         +0.04% 
Cairo SE            54494.29        +0.12% 
Amman               6297.01         -0.32% 
IPE Brent $/bbl     63.34           +1.80% 
Gold $/troy oz      582.70          +0.62% 
Euro-USD            1.26            -0.24%

By Mirna Sleiman

Of DOW JONES NEWSWIRES

DUBAI (Zawya Dow Jones)--Most Gulf markets ended down Sunday, pulled by increasing speculation and day trading.

The Dubai bourse was the most prominent loser, shedding nearly 1% on profit taking. Abu Dhabi, Kuwait and Saudi Arabia also saw selling. Qatar and Bahrain managed to end up slightly.

"It's over now for speculation on small cap companies," said Rafat Hudruj, portfolio manager at Emirates Bank. "Speculation will become less effective when blue-chip companies come back to the trading scene."

The Dubai Financial Market was dragged into the red by a 4.5 point loss. The main index closed down 0.9% at 449.9 points, with Arabtec and Dubai Islamic Bank the sole gainers, up 3.7% and 1.3%, respectively. The main loser was Salam International Investment Co., down 9% at AED17.

Abu Dhabi followed Dubai's direction, ending the day down 0.3% at 3667.99 points on low trading.

Palestine Telecommunications Co. closed up 8.4% on news that a second mobile license in the Palestinian Territories has been awarded to Kuwait's Wataniya. Taqa was the biggest loser, down 4.8%.

"The Abu Dhabi market is quiet these days, with the Dubai bourse under spotlight," said Bassam Sandouqa of Rasmala Brokerages. For Sandouqa, Abu Dhabi is a good market for long-term investments.

Saudi's Tadawul All Shares Index ended the first trading session in positive territory but couldn't resist being pulled down and ended 0.9%, or 97.8 points lower, at 11273.

"The small-caps stocks are correcting sharply and the services and agricultural sectors fell 3.5% and 7.7% respectively," said Yousef Kassantini, CEO of Bourse Experts Co. Despite Sunday's minor losses, the market is in an upward trend, he added. The Kuwait market index also closed lower, down 0.14% on profit taking, analysts said.

Qatar and Bahrain were the only GCC markets to close a shade higher. Bahrain's main index gained 0.04% to 2242 points on low volume, with under 1 million shares changing hands for a value of $1.8 million.

Qatar continued its upward trend, gaining 4.7 points to 7759 points. A total of 5.4 million shares for a value of $49 million changed hands.

On the international markets, Wall Street expects the Federal Reserve to leave interest rates untouched when it meets Wednesday. But stock markets are still anxious to learn how the central bank perceives the overall economy.

Monday, oil prices opened the week higher in Asia on the belief that OPEC may look to slash output after forecasting reduced demand ahead of the Northern Hemisphere's peak winter months.

Nymex crude was up by as much as 37 cents to $63.70 a barrel midmorning in Singapore electronic trade before easing slightly to $63.57 from Friday's close of $63.33, which was near a four-month low.

In news around the Gulf, Sheikh Ahmad Bin Saeed Al Maktoum, president of Dubai Civil Aviation, said in a statement that Dubai will invest 300 billion U.A.E. dirhams ($82 billion) in its aviation sector in the next 10 years.

Istithmar, a Dubai-based investment house, announced the creation a new real estate fund focused on emerging markets including North Africa, India, Pakistan and Turkey.

In Saudi Arabia, plans were announced to form a new SAR300 million company specialized in developing human resources in the kingdom's eastern province.

-By Mirna Sleiman, Dow Jones Newswires; +9714 2235676; mirna.sleiman@dowjones.com

(END) Dow Jones Newswires

09-18-06 0148ET

Copyright Zawya Dow Jones Newswires 2006