Thursday, May 09, 2013


 
Saudi SE             7206.27                +0.33% 
Dubai FM             2162.55                +0.60% 
Abu Dhabi SM         3343.82                +0.12% 
Kuwait SE            7724.97                -0.63% 
Doha SM              8858.29                +0.14% 
Muscat SM            6226.28                +0.56% 
Bahrain SE           1130.03                +0.88% 
Cairo SE             5403.93                +0.58% 
Amman                2028.01                +0.92% 
 
ICE Brent $/bbl       104.14                +0.11% 
Gold $/troy oz       1471.90                -0.39% 
Euro-USD                1.32                 0.00% 
DJIA                15105.12                +0.30%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stocks in the Persian Gulf region are seen trading in a tight band on Thursday as investors mull whether recent first quarter earnings reports are enough to propel local markets higher after a such a strong start to the year.

Since the beginning of 2013, stock market gauges in Dubai, Kuwait and Abu Dhabi have all inked fresh multi-year highs amid an improvement in risk sentiment.

"The solid performance by equities has increased the valuations, as a result of which, the near-term expectations of further rise in equities could be dismal," Al Masah Capital said in a recent note to clients.

Local bourses will draw a little inspiration Thursday from a solid performance on global markets overnight. The Dow Jones Industrial Average rose 48.92 points, or 0.3%, to 15105.12. The blue chips gained ground for the eighth time in 10 sessions after closing above 15000 for the first time Tuesday.

SAUDI ARABIA: The Saudi market is closed for the weekend. The benchmark Tadawul Index ended 0.3% higher at 7206.27 on Wednesday.

U.A.E.: Dubai's market closed up 0.6% at 2162.55 on Wednesday. The gauge is now up 33% for the year.

Technical analysts say Dubai's DFM Index faces key resistance at the 2200 level.

On a stock level, Arabtec shares surged 9.9% to AED2.33, while Shuaa Capital jumped 2.4% to AED0.610.

Dubai Financial Market Co. on Wednesday posted a 12% fall in first-quarter net profit, but expects margin trading to boost market activity amid an improving outlook for the emirate's economy. Its shares closed 2.2% higher at AED1.37.

In Abu Dhabi, the benchmark index there finished 0.1% higher at 3343.82.

Abu Dhabi National Energy Company, the firm better known as Taqa, said first-quarter net profit fell by 80% year-on-year as it contended with operational problems at its power and water plants and a shut-down at one of its offshore platforms in the U.K.'s North Sea. On a later call with reporters, Taqa's chief executive said repairs at the Cormorant Alpha platform will likely drag on second quarter results. Its shares closed flat at AED1.28.

KUWAIT: The market finished down 0.6% at 7724.97.

Kuwait's Mobile Telecommunications Co., better known as Zain, posted a 27% drop in first-quarter profit as volatility on currency markets hurt income and its Saudi Zain investment continued to underperform. Its shares ended down 1.3% at KWD0.740.

Shares of Kipco fell 1.1% to KWD0.44. EFG Hermes upgraded Kipco, a holding company, to buy from neutral rating previously, on upside potential after increasing its fair value to KWD0.53 from KWD0.39.

QATAR: Doha's market closed 0.1% higher at 8858.29 on Wednesday.

In terms of stocks, Qatar National Bank gained 1.1% to QAR144, while Commercial Bank of Qatar fell 0.7% to QAR67.30.

BAHRAIN: The main gauge of stocks closed Wednesday up 0.9% at 1130.03.

OMAN: Muscat's market ended 0.6% higher at 6226.28.

EGYPT: The market closed 0.6% higher at 5403.93 on Wednesday. The EGX-30 Index is down just 1% so far in the year.

Traders noted investors are still working through the implications of a government cabinet reshuffle earlier this week that included nine new ministers including some key economic positions.

Farouk Soussa, Citi's chief economist for the Middle East, said the cabinet changes will likely strain Egypt's chances of nailing a $4.8 billion loan from the IMF. The ability of Egypt's ruling party to implement reform "is in question", while the three main people negotiating the IMF loan: the finance, planning and investment ministers are now all out of the cabinet, he added.

On a stock level, OTMT gained 2% to EGP0.51 and Juhayna Foods rose 2% to EGP9.15.

NEWS FROM AROUND THE GULF: Egypt's foreign currency reserves rose for the first time in five months in April by $1 billion to $14.42 billion, the central bank said Wednesday, as the country struggles to ease itself from a prolonged economic crisis.

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

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

09-05-13 0452GMT