Wednesday, Feb 22, 2012


 
Saudi SE              6966.73               +0.90% 
Dubai FM              1596.26               +1.74% 
Abu Dhabi SM          2527.04               +0.91% 
Kuwait SE             6098.20               -0.27% 
Doha SM               8681.01               +0.35% 
Muscat SM             5666.77               -0.16% 
Bahrain SE            1145.45               -0.36% 
Cairo SE              5030.75               -2.37% 
Amman                 1951.40               -0.13% 
 
ICE Brent $/bbl        119.89               -0.99% 
Gold $/troy oz        1743.10               +0.39% 
Euro-USD                 1.32                0.00% 
DJIA                 12965.69               +0.12%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen trading mixed Wednesday as investors gauge valuations after some sharp recent gains.

Dubai has emerged the best performer so far in 2012 after the market suffered heavy losses in the last few years, but investors will likely reassess gains as the valuation gap with other GCC markets narrows, traders say.

Dubai is currently trading at a P/E of 10.16, compared with a pan-GCC P/E of 11.79, according to Zawya.com. Bahrain is the cheapest market with a P/E of 8.06.

With a significant reduction in risk of disorderly default for Greece, investors would have been expected to be less nervous about exposure to risk assets. However, going forward, growth concerns are the key downside risk, analysts say.

Asian stocks were mixed Wednesday, after a choppy Wall Street session, as investors remain cautious despite Greece securing a second bailout earlier this week. Many investors believe this will not be a final solution to Greek and euro-zone debt problems.

The euro traded in tight ranges against the U.S. dollar as doubts remain on Greece's ability to put its debt load on a sustainable footing.

Oil prices subdued Wednesday, after finishing at their highest level in nine months Tuesday, lifted by optimism over Greece's latest bailout and mounting tensions with Iran. Nymex April crude futures were last down 20 cents at $106.05 a barrel.

U.A.E.: Dubai shares finished 1.7% higher at 1596.26 Tuesday; the market has now added about 23% since hitting a multi-year low in mid-January.

Financial, real estate and service sector stocks were among the top risers Tuesday.

NBK Capital says it has adjusted its fourth-quarter earnings forecast for Arabtec Holding in view of industry developments. Its new forecast for attributable net profit is now AED23.7 million, down from AED43 million.

"Our previous forecasts were calling for a strong seasonal rebound in revenue terms, leading to stronger gross and operating margins. However, recent 4Q11 results of competitors, as well as our analysis of the industry in the quarter, indicate that this view is a bit optimistic," analyst Loic Pelichet said in a note.

Telco Du said internet services in the U.A.E. could witness some degradation as a result of an international submarine cable cut early Tuesday.

Abu Dhabi's market rose 0.9% to 2527.04 Tuesday; telco and real estate stocks supported.

Heavyweight Etisalat ended +2.2% at AED9.53 after the telco recommended a FY2011 dividend of AED0.60 per share.

SAUDI ARABIA: The Gulf's largest market closed +0.9% at 6966.73 Tuesday; petchem and bank stocks led the gains.

Saudi Hotels & Resort Areas Co. said Tuesday that it has sold a plot of land in Saudi Arabia for SAR68.34 million and that the transaction will be included in its first-quarter results.

KUWAIT: The market closed 0.3% lower at 6098.20 Tuesday; service sector and bank stocks weighed.

QATAR: Doha's market ended up 0.4% at 8681.01 Tuesday; supported by industry and bank stocks.

BAHRAIN: The main gauge of stocks closed -0.4% at 1145.45 Tuesday.

Ahli United Bank on Tuesday reported a 9.1% year-on-year rise in fourth-quarter net profit to $70.3 million as net interest income rose and loan loss charges fell.

OMAN: Muscat's market closed down 0.2% at 5666.77 Tuesday; industry and finance stocks dragged.

EGYPT: The market finished -2.4% at 5030.75 Tuesday.

Mobinil shares fell 1.7% to EGP172.10, after the telco swung to a fourth-quarter net loss of EGP177 million, hit by lower revenue, higher commercial expenses and employee bonuses.

NEWS FROM AROUND THE GULF: Exchange operator CME Group Inc. and Oman Investment Fund, a sovereign wealth fund of the sultanate, said Tuesday they plan to increase their investment in the Dubai Mercantile Exchange to help fuel its growth plans.

The number of tourists coming to Egypt dropped 33% in December, compared to the same month a year earlier as the uprising that forced the former president Hosni Mubarak to step down took its toll on one of the country's most lucrative foreign currency earners, the latest data published by the Central Agency for Public Mobilization and Statistics in Cairo showed.

The number of active registered companies in the Dubai International Financial Centre increased by 7% on year to 848 in 2011, Chief Executive Abdullah Al Awar said at a press conference, adding that he expected further gains this year despite downsizing at European financial institutions and expectations of lackluster economic growth across much of the developed world.

-By Nikhil Lohade, Dow Jones Newswires, +9714 446 1694, nikhil.lohade@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

22-02-12 0518GMT