Thursday, Jun 07, 2012


 
Saudi SE             6661.26                -1.12% 
Dubai FM             1455.96                +0.42% 
Abu Dhabi SM         2435.19                +0.07% 
Kuwait SE            6085.15                -0.73% 
Doha SM              8342.51                +0.24% 
Muscat SM            5783.91                +0.33% 
Bahrain SE           1132.17                +0.06% 
Cairo SE             4484.71                -0.40% 
Amman                1861.46                -0.46% 
 
ICE Brent $/bbl       100.82                +0.18% 
Gold $/troy oz       1622.20                -1.12% 
Euro-USD                1.26                 0.00% 
DJIA                12414.79                +2.40%

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stocks in the Persian Gulf region are likely to get a boost early Thursday from a global risk rally overnight on hopes that central bankers in Europe and the U.S. will take extra steps to help prop up an ailing global economy.

While the European Central Bank left its key interest rate unchanged on Wednesday, Central Bank President Mario Draghi said markets were underestimating the commitment of political leaders to tackle the euro-zone crisis. Investors will be hoping for similar soothing words from U.S. Federal Reserve Chairman Ben Bernanke later Thursday when he testifies before lawmakers on the economic outlook for the world's biggest economy.

Concerns about the deepening troubles in the euro zone have continued to escalate over the past few weeks. Greece faces fresh elections June 20 that are viewed as key to determining its future in the single currency, while Spain, the euro zone's fourth biggest economy, has signaled it may struggle to borrow funds to recapitalize its stricken banks and might need to seek aid from the bloc's rescue funds.

Nevertheless, it was Draghi's comments that sparked a surge on global stocks with the Dow Jones Industrial Average jumping 286.84 points, or 2.4%, to 12414.79, its biggest percentage increase since December. In Asia early Thursday, Japan's Nikkei was up 1.1%, Hong Kong's Hang Seng Index was 1.4% higher.

"With little economic data in US, the rally in risky assets was broadly a result of dovish comments from EU/US policymakers, hope for a bailout of Spanish banks and positioning," analysts at Barclays Capital said.

The risk rally spilled over to commodities as well. Crude-oil futures extended gains, after closing higher in floor trading Wednesday on expectations that central banks around the world could inject more stimulus to boost growth. Nymex crude for July delivery, also known as WTI, was last up 56 cents at $85.58 a barrel on Globex.

U.A.E.: Dubai's market closed 0.4% higher at 1455.96 Wednesday, while in Abu Dhabi, the benchmark index there finished up 0.1% at 2435.19.

In terms of stocks, Du shares climbed 1.3% to AED3.04 and Aramex added 1.1% to AED1.78. In Abu Dhabi, property stocks racked up gains with Sorouh Real Estate rising 2% to AED1.02 and Aldar Properties increasing 1.9% to AED1.09.

SAUDI ARABIA: The Saudi market is closed for the weekend. The benchmark Tadawul Index finished down 1.1% at 6661.26 Wednesday.

KUWAIT: The market finished 0.7% down at 6085.15 Wednesday.

On a stock level, Gulf Investment House jumped 3.1% to KWD0.033. Al Seyassah daily, citing an executive, reported Wednesday that GIH has repaid part of its debt and the remaining 49 million Kuwaiti dinars ($174.6 million) will be rescheduled over a number of years.

Elsewhere, Agility shares tumbled 1.3% to KWD0.38.

QATAR: Doha's market closed Wednesday up 0.2% at 8342.51.

Qatar Telecom, or Qtel, shares closed up 0.5% at QAR112.50. On Tuesday, it said it plans to double its stake in mobile operator Asiacell to 60%, a deal worth close to $1.5 billion and one that will give the Doha-based telco greater exposure to Iraq's fast growing telecoms market.

Qtel's chief executive told Zawya Dow Jones on the sidelines of the World Economic Forum in Istanbul that the telco is interested in acquisitions in Libya and Syria as it extends its geographical reach and focuses on new data and broadband offerings.

BAHRAIN: The main gauge of stocks closed up 0.1% at 1132.17.

OMAN: Muscat's market ended up 0.3% at 5783.91 Wednesday.

EGYPT: The market closed up 0.3% at 5783.91 Wednesday.

Analysts note investors still remain extremely jittery about Egypt's near term economic prospects with fears that a two-man runoff later this month for the presidency between Ahmed Shafiq, former President Hosni Mubarak's last prime minister, and prominent Islamist Mohammed Morsi, could exacerbate social unrest and prolong political stalemate.

Orascom Telecom shares ended -0.8% at EGP1.23. The company expects the issue of a $1.3 billion fine levied by authorities against its Algerian unit to be settled by the end of the year, and doesn't see the need to set aside any cash for the penalty as there are no grounds to the allegations of foreign exchange breaches, the company's chief executive said.

NEWS FROM AROUND THE GULF: Islamic Development Bank has picked five banks to arrange roadshows that could lead to the potential issuance of an Islamic bond, or sukuk, if market conditions allow, a person familiar with the matter said Wednesday.

The private banking sector in the Middle East and Africa may grow 6.6% a year to reach $6.1 trillion in value in 2016 as the gross domestic product of oil-rich countries in the region continues to expand, a study from Boston Consulting Group, BCG, shows.

Saudi Telecom Co. (7010.SA), or STC, said Wednesday it has appointed Khaled Bin Abdulaziz Al Ghunaim as the company's new chief executive officer effective June 18.

Pearl Valley, a South African golf development owned by Dubai investment firm Istithmar, filed for bankruptcy protection in May to allow it to restructure, the latest example of an investment made in the boom years by the emirate turning sour because of the global financial crisis.

Gulf Capital, an Abu Dhabi-based investment and private equity firm, is set to plow 1 billion U.A.E. dirhams ($272 million) into a new residential compound in Riyadh through its real estate arm as it eyes other deals in Saudi Arabia, Egypt and the United Arab Emirates.

Trading volumes on the Dubai Gold and Commodities Exchange, or DGCX, soared to a record high of 853,191 contracts last month, up from 237,920 contracts in May 2011, driven by upswings in gold and rupee futures trading, the bourse said Wednesday.

Egypt's foreign reserves rose $302 million at the end of May to $15.52 billion, according to data posted on the central bank's website Wednesday, marking the second month that reserves have crept up since the uprising that unseated former president Hosni Mubarak at the start of 2011.

Saudi Arabia's gross domestic product, or GDP, expanded 5.94% on year in the first quarter, data from the Central Department of Statistics and Information showed Wednesday, slowing slightly after the inflation adjusted measure grew 6.64% in the last quarter of 2011.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

07-06-12 0520GMT