Thursday, May 23, 2013


 
Saudi SE             7363.13                +0.11% 
Dubai FM             2323.34                +0.17% 
Abu Dhabi SM         3503.38                -0.18% 
Kuwait SE            8222.02                -0.25% 
Doha SM              9085.90                +0.54% 
Muscat SM            6377.83                +0.17% 
Bahrain SE           1168.86                +0.14% 
Cairo SE             5416.20                +0.17% 
Amman                2022.76                +0.38% 
 
ICE Brent $/bbl       102.06                -0.53% 
Gold $/troy oz       1386.80                -0.39% 
Euro-USD                1.28                 0.00% 
DJIA                15307.17                -0.52%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stocks in the Persian Gulf region are seen trading in a tight band early Thursday after some mixed signals overnight from the U.S. Federal Reserve regarding monetary policy in the world's biggest economy, but local market sentiment remains supported by a relatively bright economic outlook.

By the end of a volatile session on Wall Street, the Dow Jones Industrial Average declined 80.41 points, or 0.5%, to 15307.17 on Wednesday after gaining nearly 155 points earlier in the session.

Investors initially cheered comments from U.S. Fed Chairman Ben Bernanke that suggested the Fed would continue on its current course of pumping money into the financial system. However, the market reversed course as Mr. Bernanke hedged those comments by saying that Fed could decide to pull back on its easy money efforts in coming months.

U.S. leads aside, local investors remain mostly upbeat about the immediate outlook for markets with sentiment underpinned by an improving regional economy.

"Growth in the Gulf economies has held up well over the first few months of this year," Capital Economics said in a note to clients.

While global economic weakness has weighed on demand for the region's hydrocarbon exports, domestic demand, buoyed by fiscal stimulus and rapid credit growth, appears to be in better health, it added. "All told, we expect GDP in the Gulf to grow by 3.3% this year and next."

In Asia early Thursday, most markets fell after Chinese manufacturing activity declined in May, extending earlier losses brought about by signs that the U.S. Federal Reserve could start rolling back its bond-buying program.

Front month ICE Brent crude futures last traded 0.5% lower at $102.06 a barrel.

SAUDI ARABIA: The Saudi market is closed for the weekend. The benchmark Tadawul Index ended up 0.1% at 7363.13 on Wednesday.

U.A.E.: Dubai's market closed up 0.2% at 2323.34 on Wednesday. The market is up some 43% for the year as investors cheer the emirate's strengthening economy amid signs of a recovery in its real estate market.

On a stock level Arabtec said it resolved a labour dispute 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". Its shares closed flat at AED2.37.

Shares of EmiratesNBD jumped 0.4% to AED5.72. Dubai's biggest lender by market value, launched a $1 billion tier 1 bond, after receiving strong demand, according to a person familiar with the transaction.

In Abu Dhabi, the benchmark index there finished down 0.2% at 3503.38.

Emirates Telecommunications Corp. has ruled out buying the Moroccan government's stake in Maroc Telecom should the Abu Dhabi telco secure Vivendi SA's 53%-share in the North African operator, Etisalat's chief executive said on Wednesday. Etisalat has yet to hear from Vivendi on whether its bid for the Maroc Telecom stake has been successful and will "definitely" not bid for the Moroccan government's 30% shareholding, Ahmad Julfar, the chief executive of Etisalat, told reporters on the sidelines of a conference in Dubai Its shares ended up 0.9% at AED11.90.

KUWAIT: The market finished 0.3% lower at 8222.02. The gauge is up 39% this year.

"The index is at extremely overbought levels with an RSI (relative strength index) of 90 and to go long this market now would be an unwise decision," said one trader. 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 terms of stocks, Burgan Bank rose 3.3% to KWD0.630.

QATAR: Doha's market closed 0.5% higher at 9085.90 on Wednesday.

BAHRAIN: The main gauge of stocks closed Wednesday up 0.1% at 1168.86.

OMAN: Muscat's market ended up 0.2% at 6377.83.

EGYPT: The market closed 0.2% higher at 5416.20.

Egypt's central bank offered $800 million to banks at an exceptional foreign currency auction on Wednesday to cover costs of strategic imports. In the second such auction of its kind in the past two months, the central bank said proceeds will be used to cover costs of staple commodities such as tea, meat, oil, wheat, and infant milk.

EFG Hermes, Egypt's largest investment bank, said Wednesday its first quarter net profit rose 27% on year as fees and commission revenues rose. Its shares closed flat at EGP9.29.

NEWS FROM AROUND THE GULF: State-run Trade Bank of Iraq will participate in building the country's first oil export pipeline in decades, which will make the country less dependent on Persian Gulf export terminals, its president and chairman said Wednesday.

France's Carrefour SA said it is selling its 25% stake in a Middle Eastern joint venture to local partner Majid Al Futtaim Holding for 530 million euros ($686 million), as Europe's largest retailer continues to purge its portfolio of businesses across the globe.

Write to Tim Falconer at tim.falconer@dowjones.com

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

23-05-13 0449GMT