Wednesday, May 16, 2012


 
Saudi SE             7104.24                +0.51% 
Dubai FM             1486.36                +0.30% 
Abu Dhabi SM         2473.32                +0.01% 
Kuwait SE            6441.35                +0.14% 
Doha SM              8491.32                +0.03% 
Muscat SM            5587.14                -1.19% 
Bahrain SE           1155.85                -0.07% 
Cairo SE             5004.98                -1.12% 
Amman                1948.45                +0.03% 
 
ICE Brent $/bbl       111.15                -0.61% 
Gold $/troy oz       1535.00                -0.62% 
Euro-USD                1.27                -0.16% 
DJIA                12632.00                -0.50% 
 
   By Brinda Darasha 
   Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Stock markets in the Persian Gulf region are likely to trade cautiously Wednesday, tracking weak global equities, after crucial Greek talks on forming a coalition government failed.

Locally, the focus will center around a bunch of first quarter results disclosed Tuesday, including Abu Dhabi-based Dana Gas, as the earnings season draws to a close.

Greece's future in Europe's common currency was in doubt late Tuesday after a last-ditch effort to form a new government failed and the country's political turmoil sparked a dramatic increase in bank withdrawals.

The worries overshadowed steady economic readings from the U.S. and Europe. A preliminary reading showed the euro zone's gross domestic product was flat, topping economists' forecasts for a slight contraction. Germany's economy expanded more than expected.

Most Asian markets fell Wednesday. Australia's S&P ASX 200 hit a two-month low in early trading, dropping 1.6% to 4193.0. Japan's Nikkei was down 0.8% while South Korea's Kospi fell 1%.

The Greek crisis kept crude-oil futures prices under pressure too in Asian trade extending sharp declines over the past two weeks. Data released by API showing that U.S. oil inventories were sharply higher and a strong dollar also weighed on crude prices.

Nymex June crude futures were last down $1.36 at $92.62 a barrel Wednesday.

U.A.E.: Dubai's market Tuesday ended +0.3% at 1486.36. Real estate and bank stocks rebounded slightly on some bargain buying.

Emaar Properties closed +1.7% at AED2.94 in robust trade. The stock has shed 11% since the beginning of the month.

Arabtec Holding rose 0.3% to AED2.92 Tuesday, extending gains from Monday after the company clarified that Aabar Investments and its units totally held a 20.76% stake in the company as on May 10.

The clarification came after confusion prevailed over the exact stake the Abu Dhabi-based investment company held in the construction firm, leading to local fund managers and analysts seeking an overhaul of the rules surrounding takeovers and stake building in the United Arab Emirates.

Drake & Scull International, or DSI, posted an 18% drop in first quarter net profit to AED37.6 million on Tuesday, down from AED45.9 million in the year-ago period. The construction company's shares fell -3.5% at AED0.79.

Dubai Islamic Bank shares closed 0.5% higher at AED1.93 after a source disclosed Tuesday that the U.A.E.'s largest shariah-compliant bank plans to meet fixed-income investors starting this week and may issue a U.S. dollar, benchmark-sized Islamic bond, or sukuk, if market conditions are right.

Abu Dhabi shares closed flat at 2473.32 Tuesday. Property stocks slumped, while energy gained.

Dana Gas PJSC said it has hired Deutsche Bank, Blackstone Group and law firm Latham & Watkins to advise it on ways to address a $1 billion Islamic bond that matures in October. The oil and gas company earlier Tuesday posted estimate-beating quarterly net profit at AED206 million, up from AED92 million. Dana shares closed Tuesday 2.6% higher at AED0.40.

SAUDI ARABIA: Saudi's Tadawul Index closed Tuesday +0.51% at 7104.24.

Atheeb Telecom ended +5.4% at SAR17.55 and Zain KSA +4.7% at SAR8.90.

Banque Saudi Fransi has launched a $750 million, five-year Islamic bond, or sukuk, issue, after receiving strong demand, a banker aware of the transaction said Tuesday. The bank received orders worth about $4 billion and the final price of 185 basis points over mid-swaps is tighter than initial guidance, the banker said.

KUWAIT: The Kuwait stock exchange ended +0.1% at 6441.35 Tuesday. Banks led the advance.

Commercial Bank of Kuwait finished 6.6% higher at KWD0.810.

Global Investment House, a Kuwait-based financial firm, is asking its lenders for extra time to renegotiate a $1.73 billion debt restructuring originally agreed in 2009.

Aref Energy Holding Co. said Tuesday that its board considers the offer made by the local Development Enterprises Holding Co. to acquire the company's entire shares to be a fair and appropriate offer.

Shares in the company, which said that it expected to complete the sale of its 64.25% stake in Higleig in the near future, ended 3.1% lower at KWD0.126 in a higher market Tuesday.

Zain Jordan, a unit of Mobile Telecommunications Co., plans to invest JOD85 million dinars this year in infrastructure, network and new technologies, the company's chief executive said Tuesday.

QATAR: Qatar's QE Index closed flat at 8491.32 Tuesday. Gains among banking stocks were offset by declines in telecoms and insurance sectors.

BAHRAIN: The main gauge of stocks closed Tuesday -0.1% at 1155.85. Banks led the index south.

Gulf Finance House, or GFH, a Bahrain-based Islamic investment bank, Tuesday said its net profit plunged 92% to $1 million in the first quarter of 2012 from $11.94 million in the year earlier period.

OMAN: Muscat's market closed -1.2% at 5587.14 as service and insurance stocks declined.

EGYPT: The Egyptian index of shares EGX 30 closed -1% at 5004.98 Tuesday.

Property developer Talaat Moustafa Group Holding said its net profit in the first quarter rose 2.5% as sales rebounded after a tough last year due to political upheaval in the country. TMG shares closed +0.5% at EGP4.39 Tuesday.

Orascom Telecom Monday said it made a first-quarter net profit of $115.7 million, compared with $812.7 million in the same period a year ago when the telco had sold its Tunisian assets.

Beltone Financial said Tuesday that Orascom Telecom's results surprised positively on all levels, with the net profit coming in at $116 million, beating its $38 million estimate. Shares closed -3.3%at EGP3.26.

Orascom Telecom Media and Technology, or OTMT, reported Tuesday a first-quarter net profit of EGP994.7 million, its first standalone financial results since being hived off from its parent and listed earlier this year. OTMT shares closed 1.4% down Tuesday at EGP1.4.

Telecom Egypt, which Monday reported a 1.7% jump in 1Q net profit to EGP912 million, closed -0.2% at EGP12.90.

NEWS FROM AROUND THE GULF: Kuwait needs to introduce fiscal reforms, restrain public spending, and lower its dependency on oil revenues if it to avoid seeing its budget fall into deficit in five years from now, the International Monetary Fund warned Tuesday.

Qatar has built over a 3% stake in Germany's Siemens (SI, (SIE.XE) worth around EUR1.85 billion, as the wealthy Gulf state continues its recent frenetic buying of minority stakes in flagship European companies.

Egypt now expects to sign a $3.2 billion loan with the International Monetary Fund in early June, after the presidential elections take place, an official at the Egyptian finance ministry told Zawya Dow Jones Tuesday.

Gulf-based Asiya Investments has set up an advisory arm in Dubai's financial centre and will soon launch operations in Hong Kong in a bid to create an asset management business looking to cash in on the growing flow of trade between the Middle East and Asia.

-By Brinda Darasha, Dow Jones Newswires; +9714 446-1688; brinda.darasha@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

16-05-12 0506GMT