Thursday, Apr 26, 2007


 
Saudi SE             7273.34     +0.97% 
Dubai FM             3822.60     -0.92% 
Abu Dhabi SM         3080.92     -0.43% 
Kuwait SE            10710.40    +0.43% 
Doha SM              6429.06     -0.88% 
Muscat SM            5861.55     +0.08% 
Bahrain SE           2120.80     -0.01% 
Cairo SE             64558.96    +0.25% 
Amman                5956.17     +0.32% 
 
ICE Brent $/bbl      68.51       +2.04% 
Gold $/troy oz       684.50      -0.73% 
Euro-USD             1.36        +0.15% 
DJIA                 13089.89    +1.05%

By Sarmad Khan

Of DOW JONES NEWSWIRES

DUBAI (Zawya Dow Jones)--GCC stock markets are expected to trade sideways on lower volumes on Thursday before ending the week down, says an analyst.

"I'm not very optimistic about the markets ending trade higher," said Wadah Taha, head of strategy at Emaar Financial Services.

"Investors are preparing for the Deyaar IPO which will launch during the first week of May and this will further squeeze the liquidity from the market," he added.

However, Taha expects some gains in specific U.A.E. stocks.

He says smaller investors should trade conservatively selecting only solid stocks.

"There has to be a good justification to make a buying decision in a falling market," he said.

Gulf markets moved within a narrow range on Wednesday, closing mixed with marginal gains in Saudi, Kuwait and Oman and slight declines in Dubai, Abu Dhabi, Doha and Bahrain.

Saudi's Tadawul All Share Index closed up 1% at 7273.34, but the index was down 2.8% from its last week's close. Saudi Telecom Co. led blue-chip gainers, up 2.6%. Saudi Electricity Co. rose 2.2%, Al Rajhi Bank climb 1.6% and Sabic closed up 0.6%.

The Kuwait bourse ended the week 0.4% up at 10710.4 points as Mobile Telecommunications Co. continued its surge. The share, which accounted for 28% of the market turnover, closed up 100 fils, the maximum allowed, at KWD3.520.

Safaa Zbib of Bayaan Investment said MTC, which is in the process of gaining the third Saudi mobile license with a $6.1 billion bid, is an attractive share for strategic investors. But she added that the current rise may be linked to speculative trade.

"The MTC story continues. However, the reasons for the current rise aren't very clear," she said.

The Kuwait bourse last week launched an investigation into the high trading volumes in MTC shares as newspaper reports said U.A.E. or Saudi investors might be buying into the telecom operator.

Zbib said the index is poised for further rise as it crossed the 10700 resistance level.

The Dubai bourse closed down for the third consecutive day, shedding 0.9% to 3822.60. It was dragged down by losses in DFM Co., Amlak Finance, Tabreed and Emaar Properties. DFM Co. lost 8.5%, Amlak declined 4.8%, Tabreed ended 4.1% and Emaar dropped 1.4%.

Mohammad Shabaan of Pioneer Securities said there will be a further fall in the absence of any drivers to spur trade.

"Major companies have come out with their earnings, and I don't see any news to lift investor confidence," he said.

Shabaan said index heavyweight Emaar's close below AED11 is significant as the share was dormant for the past few sessions.

"This can add extra pressure in a falling market," he said.

The Abu Dhabi market too ended in the negative territory, down 0.4% at 3080.92.

National Bank of Abu Dhabi, the U.A.E.'s largest lender by assets, lost 2.3% after the bank Tuesday reported that its first-quarter net profit has declined 4.7% to AED601 million.

Shabaan said investors are looking to book small profits in Abu Dhabi.

Union Cement Co. ended up 8.1%, while Gulf Cement Co. gained 6.2%. Volume leader Taqa closed marginally down, Ras Al Khaimah Bank lost 4%, followed by Aldar down 3.7%.

Doha shares lost 0.9% to close at 6429.06 on low volumes.

Dominic Beange of Dlala Brokerage said the market is generally retreating, but institution-inspired trading is expected next week. "We have seen an increased institutional interest in strong stocks, which are proving their profitability in first-quarter earnings," he said.

Beange said the market is expected to trade between the 6400 to 6500 point level next week.

Volume leader Nakilat ended down 2%, while Dlala Holding gained 3.8%.

The Bahrain market closed slightly down at 2021.80, while the Muscat Securities Market edged up slightly to end at 5861.55.

On international markets, European share markets, driven by deals and earnings, are likely to open higher Thursday, with prices of government debt under pressure from interest rate worry. Oil and the euro are mixed, while gold is higher.

On Wall Street, with futures higher Thursday, the robust profits from several large companies helped push the stock market to historical heights on Wednesday. And more gains are likely.

The euro is little changed against the dollar and yen as the market wound down trading ahead of the Japan holidays next week, dealers said. The euro is trapped in narrow ranges against its two main rivals for now.

Oil prices were mixed Thursday after a midweek U.S. fuel stocks report showed an unexpected and large decline in gasoline stockpiles and a fall in refinery utilization. June Nymex crude was up 10 cents to $65.94 a barrel. Brent fell 4 cents to $68.53.

In news around the Gulf, A fund linked to Three Delta has bought a stake in U.K retailer J. Sainsbury PLC, a person familiar with the situation said Wednesday.

The unit, Delta Two, is advised by investment fund Three Delta.

Traders speculated Wednesday that Three Delta - a GBP20 billion investment fund,of which the largest investors are the Qatar government and Sheikh Hamad bin Jasim bin Jaber al-Thani - was behind the purchase.

-By Sarmad Khan, Dow Jones Newswires; +9714 364 4965; sarmad.khan@dowjones.com

Copyright (c) 2007 Dow Jones & Company, Inc.

(END) Dow Jones Newswires

26-04-07 0545GMT