Tuesday, May 14, 2013


 
Saudi SE             7158.75                -0.51% 
Dubai FM             2196.02                +0.50% 
Abu Dhabi SM         3418.93                +0.43% 
Kuwait SE            7846.87                +0.25% 
Doha SM              8900.25                +0.60% 
Muscat SM            6285.47                +0.33% 
Bahrain SE           1142.31                +0.31% 
Cairo SE             5417.47                -0.54% 
Amman                2020.52                +0.08% 
 
ICE Brent $/bbl       102.67                +0.03% 
Gold $/troy oz       1439.60                +0.13% 
Euro-USD                1.30                 0.00% 
DJIA                15091.68                -0.20%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stocks in the Persian Gulf are likely to remain well supported Tuesday as the region's relatively robust economic fundamentals and some still decent pockets of value keep equity bulls interested.

"Few obstacles and red flags are on the horizon which is emboldening the buyers," said Al Masah Capital in a recent note to clients. "At this stage, the only factor that could derail the current momentum is the eventual slowdown in activity as we approach the summer months and Ramadan."

The economic backdrop for the region remains a compelling reason for many investors to invest in local shares, say traders.

In a report released Monday, the Institute of International Finance said the economies of the six Gulf Cooperation Council countries should expand by 3.8% this year, but non hydrocarbon gross domestic product growth will likely reach 5% due to continued high government spending and further recovery of the private sector.

On Wall Street overnight, the Dow Jones Industrial Average lost 26.81 points, or 0.2%, to 15091.68. In Asia on Tuesday, Japanese stocks paused amid a stronger yen, while gains in South Korean car and technology companies boosted the Kospi.

U.A.E.: Dubai's market closed up 0.5% at 2196.02 on Monday, while in Abu Dhabi, the benchmark index there finished 0.4% higher at 3418.93.

"Dubai continues its ascent and has been in overbought territory since the third week of April, as indicated by the 14 Day Relative Strength Index," said one local analyst.

On a stock level, shares of Du fell 0.6% to AED5.30, while Etisalat lost0.8% to AED11.85.

The U.A.E. telecoms authority is considering regulatory options to boost competition in the sector which will help lower prices, a move that may face some resistance from the operators. The Telecommunications Regulatory Authority, in a request-for-proposal document issued in April and seen by Zawya Dow Jones, has asked consultants to pitch for work to carry out a study that will estimate the value of economic activity generated by the sector.

Elsewhere, U.A.E.-based Air Arabia said net profit in the first-quarter surged 20% as the low-cost airline carried more passengers and opened new routes.

SAUDI ARABIA: The benchmark Tadawul Index ended 0.5% lower at 7158.75 on Monday.

Technical analysts at NCB Capital said the failure of the Tadawul to hold above 7,170 means it could correct to 7,150 and 7,130. "On the other hand, it may face resistance at 7,230 and 7,250," they said.

In terms of stocks, Dar Al Arkan fell 0.6% to SAR8.35, while Sabic lost 0.6% to SAR91.0.

KUWAIT: The market finished up 0.3% at 7846.87.

The Institute of International Finance said on Monday that it expects a further slowdown in overall economic growth in 2013 to 2.2% due to flattening crude oil production, non hydrocarbon growth should reach 3.5% as there are some indicators that the private sector and public investment are recovering.

QATAR: Doha's market closed 0.6% higher at 8900.25 on Monday.

BAHRAIN: The main gauge of stocks closed up 0.3% at 1142.31.

Bahrain Telecommunications Co., or Batelco, on Monday posted a 17% drop in first-quarter profit as the group's revenues fell and the telco lost mobile subscribers in its fiercely contested home market.

OMAN: Muscat's market ended 0.3% up at 6285.47.

EGYPT: The market closed 0.5% lower at 5417.47.

Capital Economics said Egypt has muddled through without an IMF deal for over two years, as bilateral aid has staved off a full-blown balance of payments crisis.

"But this cannot go on forever. The longer Egypt goes without securing a deal with the Fund, the closer it will be to tipping into a crisis," it said in a note to clients.

NEWS FROM AROUND THE GULF: Industrial & Commercial Bank of China Ltd., the country's largest state-owned lender, is targeting asset growth of up to 10% in the Middle East this year as it opens new offices in Saudi Arabia and Kuwait and looks to arrange local Islamic bond sales by Chinese companies, according to its regional chief executive.

Saudi Arabia will cap the price swing of stocks debuting on the stock exchange at 10% on their first day of trade, the Capital Market Authority said.

The Carlyle Group on Monday said it bought a minority stake in Al-Nabil Food Industries, a Jordanian producer of frozen and chilled food, as the U.S. private equity giant continues to invest in areas that cater to the region's growing population.

Dubai needs to raise around $37 billion to finance debt that matures this year and next as the emirate scales back its overseas investments and focuses instead on its traditional strengths of tourism and trade, the Institute of International Finance said on Monday.

Virgin Mobile Middle East & Africa has made an application for a mobile licence in Saudi Arabia, tying up with Saudi Telecom Co. (7010.SA) to provide telecom services in the kingdom, according to Sir Richard Branson, the president of Virgin Group.

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

Copyright (c) 2013 Dow Jones & Co.

(END) Dow Jones Newswires

14-05-13 0458GMT