Wednesday, May 22, 2013


 
Saudi SE              7355.27               +0.66% 
Dubai FM              2319.35               -0.93% 
Abu Dhabi SM          3509.64               -0.39% 
Kuwait SE             8242.31               +1.43% 
Doha SM               9036.95               -0.30% 
Muscat SM             6367.10               -0.28% 
Bahrain SE            1167.19               +0.37% 
Cairo SE              5407.25               -0.46% 
Amman                 2015.07               +0.22% 
 
ICE Brent $/bbl        103.56               -0.34% 
Gold $/troy oz        1374.50               -0.23% 
Euro-USD                 1.29               +0.09% 
DJIA                 15387.58               +0.34%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen trading in ranges on Wednesday as investors eye fresh catalysts for direction after recent gains, while the spotlight will likely remain on Kuwait.

The benchmark Kuwait Stock Exchange index rallied to a multi-year high in the previous session amid elevated local investor interest in small-value stocks, according to a senior trader at NBK Capital's brokerage operations.

The market is now up 39% this year, but London-based Capital Economics warned that the country's fractious politics is undermining economic growth prospects after a fresh bout of tensions between Kuwait's parliament and the government.

Moreover, valuations are also looking relatively expensive with Kuwait trading at a P/E of 18.1, compared with a pan-GCC P/E of 13.3, according to Zawya.com.

In the global markets, Japanese stocks outperformed their Asian peers as the yen resumed its weakening trend and no surprises emerged from the Bank of Japan's policy meeting outcome.

The focus is now on U.S. Federal Reserve Chairman Ben Bernanke's testimony to the Joint Economic Committee of the U.S. Congress, which will take place later in the global day, and will be scrutinized for further clues over the direction of U.S. monetary policy.

U.A.E.: Dubai shares finished 0.9% lower at 2319.35 on Tuesday.

The market is still up some 43% for the year as investors cheer the emirate's strengthening economy amid signs of a recovery in its real estate market.

A senior official at the International Monetary Fund on Tuesday however said that Dubai should regulate the pace of its real estate market rebound to prevent another boom-bust scenario.

Arabtec Holding said it has resolved a labour dispute at the U.A.E.-based construction company with no impact on any of its projects.

Work had stopped since Saturday, some labourers told Zawya Dow Jones earlier this week, but Arabtec said the stoppages were "partial".

"The stoppage was resolved amicably," Arabtec said in a statement posted on the Dubai bourse website late on Monday, noting "all workers returned to work."

Abu Dhabi's market was down 0.4% at 3509.64 Tuesday, led by energy stocks.

Emerging Markets Telecommunications Services, a 40%-owned subsidiary of Abu Dhabi's Etisalat, has signed a syndicated loan facility worth $1.2 billion with 13 Nigerian banks, according to a statement on the Abu Dhabi Securities Exchange.

SAUDI ARABIA: The Tadawul market rose 0.7% to 7355.27 Tuesday.

The benchmark index has now closed higher in the last five sessions, adding some 3% in the process and closing above resistance at the 7350 level, according to a local analyst.

KUWAIT: The benchmark KSE Index rose 1.4% to 8242.31 Tuesday--its highest close since mid-June 2009. Technology and real estate stocks were among the top risers.

Kuwait Finance House shares closed up 1.3% at KWD0.800 on Tuesday after the company said that it expects to realize a profit of KWD26.3 million on the sale of a real estate property.

National Bank of Kuwait said on Tuesday that it has signed a contract to finance the KWD98 million expansion project of the local Al Amiri Hospital.

QATAR: Doha's market ended -0.3% at 9036.95 Tuesday, weighed by industry stocks.

Doha Bank has earmarked $1.5 billion of lending for the United Arab Emirates as it shores up its capital and makes a renewed lending push across the region, the Qatari bank's chief executive said Tuesday.

BAHRAIN: The main gauge of stocks closed +0.4% at 1167.19 Tuesday, propped up by the financial sectors.

OMAN: Muscat's market finished down 0.3% at 6367.10 Tuesday, undermined by bank stocks.

EGYPT: The benchmark EGX 30 Index closed down 0.5% at 5407.25 Tuesday.

Egypt's reliance on its central bank for finance could raise the country's already-rising inflation, Standard & Poor's Ratings Services said in a report.

Talks between Russian telecommunications company VimpelCom Ltd. and the Algerian government regarding the government's potential purchase of Algeria's biggest mobile operator Djezzy have ended in failure, two officials close to the matter told Dow Jones Newswires.

One official said the talks were halted after the two sides met in Paris two weeks ago to discuss VimpelCom's sale of a majority stake in Djezzy, which is part of VimpelCom-controlled Orascom Telecom Holding.

Altimo, a unit of Russian billionaire Mikhail Fridman's Alfa Group, said in a statement Tuesday it won't increase its offer price of $0.70 a share for Egypt's Orascom Telecom Holding.

NEWS FROM AROUND THE GULF: Egypt, which needs to cut government expenditure, plans to introduce ration cards for subsidized fuel by September, the country's new oil minister Sherif Haddara said Tuesday. "We have the cards and the machines... citizens will get the cards by August or September," Mr. Haddara, said, according to state television.

Write to Nikhil Lohade at nikhil.lohade@dowjones.com

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

22-05-13 0536GMT