Thursday, Aug 02, 2012
Saudi SE 6892.62 +0.21%
Dubai FM 1547.86 +0.34%
Abu Dhabi SM 2516.60 +0.41%
Kuwait SE 5721.72 +0.02%
Doha SM 8317.59 +0.23%
Muscat SM 5427.50 +1.29%
Bahrain SE 1100.96 +0.10%
Cairo SE 4935.59 +1.50%
Amman 1872.67 +1.09%
ICE Brent $/bbl 105.63 -0.31%
Gold $/troy oz 1604.10 -0.33%
Euro-USD 1.23 +0.08%
DJIA 12976.13 -0.25%
By Brinda Darasha
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Persian Gulf stock markets are likely to start higher Thursday as investors look for positive action from the European Central Bank later in the day.
Analysts at Barclays said that the while outcome of the ECB meeting is difficult to forecast, "we believe that if the Eurogroup allows the EFSF to purchase peripheral debt in primary markets, the ECB will also reactivate the SMP program to support secondary debt markets on the side."
Meanwhile, The U.S. Federal Reserve Wednesday gave a more downbeat assessment of the economy, but held back from immediately starting a new round of bond buying or taking other actions.
Asian markets gave up early gains amid uncertainty about whether the ECB will take decisive steps to contain the euro-zone debt crisis.
In the broader Middle East region, focus will also be centered around Egypt as the new government there is expected to officially announce its cabinet--widely expected to be market friendly, in a bid to impress international donors and foreign investors.
In the global oil markets, crude futures retreated in early Asian trade Thursday as the absence of concrete action by the U.S. central bank weighed on sentiment.
Nymex crude futures for September delivery was last down 10 cents to $88.81.
U.A.E.: Dubai's market Wednesday ended +0.3% at 1547.86. Property shares continued to be buoyant after the recent raft of positive earnings.
Drake and Scull was the top riser; +4.7% at AED0.89. The contractor is still to report its second-quarter earnings.
Arabtec was 1.4% higher at AED2.96, while Emaar closed +0.6% at AED3.42, paring some early gains.
Bahrain-based investment bank SICO said in a note Wednesday that Emaar Properties' increasing exposure to its Indian joint venture Emaar MGF may pose earnings risks going forward.
Tabreed closed +3.2% at AED1.30. The district cooling company said Wednesday its first-half net profit rose 25% on year to AED94.7 million supported by its core chilled water business and lower finance costs.
Global ports operator DP World expects to exceed the average industry growth in cargo-handling in the second half of the year, after posting a 7.5% year-on-year rise in volumes at its terminals in the first half. Shares closed -0.5% at $10.10 on Nasdaq Dubai.
DP World's 7.5% year-on-year first-half growth in cargo volumes was in line with expectations and ahead of industry forecasts of between 3% and 5%, Nomura said in a note.
Abu Dhabi shares closed +0.4% at 2516.60 Wednesday.
Abu Dhabi Islamic Bank Wednesday reported a second-quarter net profit of AED322.6 million, up 2.3% on the year.
SAUDI ARABIA: The Tadawul market is closed for the weekend. The benchmark ended +0.2% at 6892.62 Wednesday.
KUWAIT: The Kuwait stock exchange ended flat at 5721.72 Wednesday.
Jazeera Airways Group closed 3.7% lower at KWD0.395. The company said Tuesday its net profit in the second quarter rose 23.5% on year to KWD2.6 million as yields rose.
National Bank of Kuwait closed +1% at KWD1. The bank said Tuesday it has completed the acquisition of an additional 11.05% stake in local Boubyan Bank for KWD121.7 million.
Development Enterprises Holding Co., known as DEH, has completed the acquisition of a 66.76% stake in Aref Energy Holding Co. for KWD67.1 million, the Kuwaiti bourse said Wednesday.
QATAR: Qatar's QE Index closed +0.2% at 8317.59 Wednesday. Industrial stocks paced the gains.
BAHRAIN: The main gauge of stocks closed Wednesday +0.1% at 1100.96.
Investcorp Bank said Wednesday its full-year net profit more than halved to $67.4 million, from $140.3 million a year earlier due to lower returns on its portfolio of investments.
OMAN: Muscat's market closed +1.3% at 5427.50 Wednesday. Bank and investment stocks led the gains.
EGYPT: The Egyptian index of shares EGX 30 closed +1.5% at 4935.59 Wednesday.
Investors took heart from news that the government of Hesham Qandil is close to naming his cabinet, which is expected to reflect the Muslim Brotherhood's emphasis on short term stability and policy continuity.
"We believe that the IMF deal--and a more general attempt to improve Egypt's creditworthiness--will be a key short term goal of the new government," Hani Sabra, an analyst at Eurasia Group noted.
At a stock level, Mobinil led the charge gaining 10% to EGP146.85, while Orascom Construction Industries rose 3.2% at EGP269.90 and Telecom Egypt was 1.6% up at EGP12.78.
NEWS FROM AROUND THE GULF: Saudi Arabia's money supply growth accelerated to 9.8% on year in June, compared with 7.7% in May, data from the Saudi Arabian Monetary Agency, or SAMA, showed.
Saudi Arabia's state-run Grain Silos and Flour Mills Organization, or GSFMO, said Wednesday it has issued a tender to buy 275,000 tons of hard wheat, for shipment from October to November 2012.
Dubai World Central, the city state's new under-construction airport, saw cargo volumes more than double in the second quarter, new data showed Wednesday.
-By Brinda Darasha, Dow Jones Newswires; +9714 446-1688; brinda.darasha@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
02-08-12 0526GMT
