Wednesday, May 15, 2013


 
Saudi SE           7139.30      -0.27% 
Dubai FM           2255.19      +2.69% 
Abu Dhabi SM       3481.47      +1.83% 
Kuwait SE          7862.89      +0.20% 
Doha SM            8938.10      +0.43% 
Muscat SM          6318.73      +0.53% 
Bahrain SE         1148.45      +0.54% 
Cairo SE           5400.76      -0.31% 
Amman              2018.95      -0.08% 
 
ICE Brent $/bbl     102.59      +0.08% 
Gold $/troy oz     1424.30      -0.01% 
Euro-USD              1.29      +0.10% 
DJIA              15215.25      +0.82%

By Brinda Darasha

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf region are seen higher Wednesday as an improving outlook for several regional economies attract new funds.

"New cash is driving Dubai and Abu Dhabi higher as investors are turning bullish again on the U.A.E.'s fortunes," said an Abu Dhabi-based fund manager at a local bank. "We are seeing investor accounts lying dormant since 2008 being reactivated as cash is pumped in."

Positive global indicators too are likely to support local sentiment. Asian shares were mostly higher Wednesday with Japan's Nikkei Stock Average above 15,000 points for the first time in more than five years, pushed by yen weakness and Sony Corp.'s spin-off plans.

U.S. shares overnight climbed to fresh record levels as investors continued to bid up stocks geared toward an accelerating global economy. The Dow Jones Industrial Average advanced 123.57 points, or 0.82%, to 15215.25, finishing Tuesday's session near the day's high.

Elsewhere, light, sweet crude for June delivery last traded up 13 cents at $94.34 a barrel on the New York Mercantile Exchange.

U.A.E.: Both U.A.E stock exchanges chalked up multi-year highs Tuesday.

Dubai's benchmark DFM Index rose 2.7% to 2255.19--its highest close since end-October 2009. Abu Dhabi's market was up 1.8% at 3481.47--its highest close since end-October 2008.

Banks and real estate stocks, the two most prominent sectors in the U.A.E. and seen as benefiting the most from a regional economic rebound, led the gains.

In Dubai, Dubai Islamic Bank rose 5.8% at AD3.11, while blue chip Emaar Properties added 3.1% to AED5.72.

Commercial Bank of Dubai has launched a $500 million, five-year bond, with a spread of 250 basis points over midswaps after receiving strong demand, according to a lead arranging bank.

Shuaa Capital closed 0.8% lower at AED0.66. The Dubai-based financial firm said early Tuesday it narrowed its losses to AED5.9 million in the first quarter as it contained expenses and tried to execute on a turnaround strategy.

In Abu Dhabi, Dana Gas shares closed 5.3% higher at AED0.60. The energy company reported a first-quarter net profit of AED241 million Tuesday, a 17% rise on the same period last year. Net profit was boosted by the sale of part of its stake in Hungary's MOL during the quarter; the company in February sold 1.675 million MOL shares, raising $135 million.

SAUDI ARABIA: Saudi's Tadawul Index closed Tuesday -0.3% at 7139.30; insurance stocks declined.

KUWAIT: The Kuwait stock exchange ended 0.2% higher at 7862.89 Tuesday.

Investment Dar said it has proposed a settlement-in-kind deal to its creditor banks and investors that involve a portion of the company's asset portfolio.

QATAR: Qatar's QE Index closed +0.4% at 8938.10 Tuesday.

BAHRAIN: The main gauge of stocks closed Tuesday up 0.5% at 1148.45 supported by banks.

United Gulf Bank said Tuesday its first-quarter net profit fell 29% on the year mainly due to its underperforming associate and joint venture companies. Its net profit tumbled to $6.5 million in the first quarter of 2013, from $9.1 million in the year earlier period.

OMAN: Muscat's market closed up 0.5% at 6318.73. All sectors advanced.

EGYPT: The main index of shares EGX 30 closed -0.3% at 5400.76 Tuesday.

Telecom Egypt, the country's sole fixed line provider, posted a 6.2% decrease in first-quarter profit as expenses rose on the back of higher salaries and interconnection costs. Its shares closed -0.9% at EGP13.28.

Orascom Construction Industries on Tuesday said its Netherlands-based parent company plans to go ahead with a tender offer to acquire all of OCI's Cairo-listed shares, a move that may eventually lead to the delisting of Egypt's biggest company by market value from its bourse. OCI shares closed 1.6% lower at EGP241.80 on Tuesday.

EFG Hermes said it is planning to raise its capital to EGP2.87 from EGP2.39 billion, by issuing one free share for every five shares held, pending approval from the country's market regulator. Shares closed 3.4% higher at EGP9.84.

Property developer Talaat Moustafa Group on Tuesday posted a 20% fall in first quarter profit. Its three-month net profit was EGP139.4 million, down from EGP173.7 million a year earlier.

NEWS FROM AROUND THE GULF: Egyptian private equity firm Citadel Capital said Tuesday its subsidiary Mashreq Petroleum has signed a 25-year concession agreement with the East Port Said Port Authority to build Egypt's first independent tank terminal.

Dubai rebuffed offers for its 5.3% stake in MGM Resorts International on valuation grounds as recently as late last year, but it remains open to selling the asset for the right price, according to senior government officials.

Write to Brinda Darasha at brinda.darasha@dowjones.com

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

15-05-13 0457GMT