Wednesday, Oct 10, 2012
Saudi SE 6790.20 -0.25%
Dubai FM 1628.39 +0.08%
Abu Dhabi SM 2651.48 +0.13%
Kuwait SE 5993.19 -0.02%
Doha SM 8482.09 0.00%
Muscat SM 5663.39 +0.02%
Bahrain SE 1061.80 -0.56%
Cairo SE 5566.89 -0.37%
Amman 1888.87 -0.38%
ICE Brent $/bbl 114.03 -0.41%
Gold $/troy oz 1765.70 -0.06%
Euro-USD 1.29 0.00%
DJIA 13473.53 -0.81%
By Nikhil Lohade
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf are seen rangebound Wednesday as investors remain cautious on international news flow, while the spotlight will likely fall on regional banks after several Saudi lenders reported their quarterly financials.
While most lenders including Riyad Bank, Saudi Arabia's third largest by market value, posted an increase in third-quarter profits, their efforts were mixed according to analyst expectations.
In the broader region, geopolitical tensions, European sovereign debt woes and global growth concerns will likely continue to weigh on sentiment, traders say.
Asian markets were lower Wednesday, tracking overnight declines on Wall Street--where markets responded badly to the International Monetary Fund's downward revision of global growth forecasts.
Oil prices were lower Wednesday, after rising the previous day. While a weak outlook for the global economy is dragging on sentiment, the focus is also on burgeoning tensions in the Middle East. Nymex November crude future were last down 41 cents at $91.98 a barrel.
U.A.E.: Dubai shares finished +0.1% at 1628.39 Tuesday; propped up by real estate firms.
Abu Dhabi's market was up 0.1% at 2651.48 Tuesday; supported by financial stocks.
Abu Dhabi National Energy Co., better known as Taqa, plans to invest in a power project in southern Turkey as part of its strategy to expand in the Middle East, North Africa and Europe.
SAUDI ARABIA: The Gulf's largest market ended -0.3% at 6790.20 Tuesday.
Riyad Bank, Saudi Arabia's third largest lender by market value, said Tuesday its net profit in the third quarter rose 5.8% on year to SAR840 million, mainly due to an increase in operating income. The bank's quarterly effort was above Sico's estimates of SAR837 million and NCB Capital's forecast of SAR808 million, but missed EFG Hermes' expectations of SAR883 million.
Arab National Bank said Tuesday its third quarter net profit rose 10% on year to SAR572.7 million as operating income surged and it increased lending, but still fell short of some analyst forecasts.
The Saudi Investment Bank said Tuesday its net profit in the third quarter rose 61% on year to SAR232 million, helped by lower operating expenses.
Beltone Financial maintained its overweight allocation to Saudi Arabia in a fourth-quarter strategy update note, diversifying its exposure to all sectors.
It's shifting the allocation of funds from consumer goods, building materials, and banks only to add more sectors including telecommunications and energy, based on fundamental upside, Beltone said.
Saudi Electricity Co., which is investing billions of dollars to boost its power generation capacity, may face a financing gap of between $1 and $2 billion next year that it could fill with a combination of government funding and capital market transactions, according to a senior company executive.
Arabian Cement Co., or ACC, Tuesday said it expects sales revenues to fall this year by SAR24 million, or 4% of overall revenues, due to a recent fire at one of its five cement mills.
KUWAIT: The benchmark stocks index closed flat at 5993.19 Tuesday; the market is up 3% this year to date.
Commercial Real Estate Co., or Al Tijaria, Tuesday said it has realized a profit of KWD3.87 million on the sale of a plot of land it owned in the country's Mahboula area.
QATAR: Doha's market finished little changed at 8482.09 Tuesday; it is down more than 3% in 2012 so far.
BAHRAIN: The main gauge of stocks ended 0.6% lower at 1061.80 Tuesday; banks weighed.
Aluminum maker Alcoa Inc. will pay $85 million to settle a four-year legal battle with Alba over bribery allegations.
The settlement also includes $360 million in a long-term alumina sales agreement, according to Alba.
OMAN: Muscat's market closed flat at 5663.39 Tuesday; it is slightly down for the year.
EGYPT: The benchmark EGX 30 Index closed 0.4% lower at 5566.89 Tuesday; the market is still up some 53% for the year despite a sharp recent correction.
Foreign capital isn't returning to Egypt in sufficient volumes and weak external conditions are preventing a recovery in the country's key foreign earners such as tourism, according to Said Hirsh at Capital Economics.
The market has given the government the benefit of doubt and Egyptian assets have rallied on the back of a stabilisation in political conditions in the past couple of months, but, the analyst noted, as soon as concerns over the IMF deal resurfaced again last week, stocks fell sharply. "This serves to highlight the fragility of the current situation."
EFG Hermes expects to receive regulatory approval for the deal with Qatar's QInvest, that will create one of the Arab world's biggest financial services firms, within the coming weeks after which the transaction could be completed in less than two months, the bank's chairwoman said Tuesday.
National Bank of Egypt may tap the markets for a sukuk, and expects a fall in non-performing loans to boost full-year net profit, the lender's top executive said on Tuesday.
NEWS FROM AROUND THE GULF: Egypt's government aims to achieve economic growth of 7.5% within the next five years by attracting new foreign investment, the country's prime minister said on Tuesday.
A judge on Tuesday gave Bahrain investment firm Arcapita Bank until Dec. 14 to file a reorganization plan without the threat of rival proposals, with the understanding that the company won't seek further extensions after that date.
Write to Nikhil Lohade at nikhil.lohade@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
10-10-12 0511GMT
