Wednesday, May 23, 2012


 
Saudi SE               7103.52              +1.06% 
Dubai FM               1496.56              +0.57% 
Abu Dhabi SM           2471.05              +0.10% 
Kuwait SE              6381.01              -0.53% 
Doha SM                8498.73              +0.90% 
Muscat SM              5750.36              +2.26% 
Bahrain SE             1138.32              -0.71% 
Cairo SE               4864.18              -0.29% 
Amman                  1906.41              +1.47% 
 
ICE Brent $/bbl         109.20              +0.36% 
Gold $/troy oz         1585.80              -0.51% 
Euro-USD                  1.28              -0.23% 
DJIA                  12502.81              -0.01%

By Nikhil Lohade

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Persian Gulf stock markets are seen weighed Wednesday by fresh concerns about the euro zone after a former Greek prime minister said preparations for an exit from the bloc are being considered, dampening sentiment ahead of a European Union summit.

In the wider region, the spotlight will likely fall on Egypt as the Arab country heads into its first free presidential elections in a post-Mubarak era starting Wednesday. The election poses the biggest test yet of the country's rocky transition from military-backed dictatorship to democratic civilian rule.

Asian stocks fell Wednesday after the comments from Greece's former prime minister, which also sent investors to the U.S. dollar as risk appetite diminished. The euro was down to $1.2667 in early Asian trading.

Oil prices were lower Wednesday, after falling the previous day as concerns about the euro zone continued to cast doubt on prospects for economic expansion and increased oil demand.

The Organization for Economic Cooperation and Development forecast a 0.1% contraction this year for the single-currency area and growth of only 0.9% in 2013. That could cut demand for crude and other commodities. Nymex July crude futures were last down $0.62 at $91.23 a barrel.

U.A.E.: Dubai shares finished +0.6% at 1496.56 Tuesday.

Arabtec Holding rose 0.7% to AED2.92; Aabar Investments has raised its stake in Arabtec to 21.57%.

Dubai Islamic Bank, the U.A.E.'s largest shariah-compliant lender by market value, has priced its $500 million, five-year Islamic bond, or sukuk, after receiving strong demand, a banker aware of the transaction said Tuesday.

Abu Dhabi's market ended up 0.1% at 2471.05 Tuesday.

Sorouh Real Estate ended +3.9% at AED1.06 and Aldar Properties +3.7% at AED1.11; both stocks also rose Monday amid market speculation of some progress with regards to their planned merger. Two people familiar with the matter said Tuesday Goldman Sachs and three other investment banks have been named as advisors on the potential merger.

Abu Dhabi National Energy Co., better known as Taqa, said Tuesday it has formed a joint committee with the Turkish Energy Ministry to explore investment opportunities in the energy sector there.

SAUDI ARABIA: The Tadawul market ended 1.1% higher at 7103.52 Tuesday; bank and petchem stocks led the advance.

The benchmark index extended the previous session's gains after bouncing back above the 7000 level. Technical indicators suggest the rebound may continue in the near term, said NCB Capital; noted support now at the 7080 level.

Saudi Electricity Co., or SEC, aims to complete its restructuring by January 2014, as the largest-listed utility in the Gulf region prepares to invest $100 billion over the next 10 years to almost double its power generation capacity, the firm's chief executive said Tuesday.

National Industrialization Co., or Tasnee, said Tuesday it completed its first shariah-compliant sukuk issue worth SAR2 billion.

KUWAIT: The benchmark stocks index ended down 0.5% at 6381.01 Tuesday.

Kuwait Finance House, the Gulf state's largest Islamic bank, Tuesday said it's in talks to sell its stake in the local Al Salam [International] Hospital Co., or SIH.

National Bank of Kuwait said Tuesday it has secured the central bank's approval to extend for an additional six months the period for buying back and reselling up to 10% of its issued shares.

International Financial Advisors said Tuesday it swung to a loss of KWD4.77 million in the first quarter of 2012 from a net profit of about KWD409,000 a year earlier.

QATAR: Doha's market closed +0.9% at 8498.73 Tuesday; industry and bank stocks were among the top risers.

BAHRAIN: The main gauge of stocks closed 0.7% lower at 1138.32 Tuesday; the banking and hotel sectors dragged.

OMAN: Muscat's market ended 2.3% higher at 5750.36 Tuesday; led by financial and industry stocks.

EGYPT: The benchmark EGX 30 Index closed down 0.3% at 4864.18 Tuesday; the market is still up some 34% for the year.

NEWS FROM AROUND THE GULF: Saudi Arabia will continue to experience strong growth this year and remains committed to its massive social spending program, even as the risks to the global economy remain high and the prospect of crude oil prices correcting a threat, the country's finance minister said Tuesday.

Dubai Duty Free, the state-owned company that operates tax-free shops at the Dubai International Airport, is raising $1.5 billion in loans, more than previously planned after receiving strong interest from the banks, to fund its expansion at the global air transport hub, a senior executive said Tuesday.

Kuwait plans to spend $6 billion on expanding its airport to accommodate 13 million passengers annually by 2016, a senior civil aviation official said Tuesday.

-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com; Twitter: @ZDJnews

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

23-05-12 0523GMT