Mideast Stocks - Major Gulf stocks subdued as banks weigh on Dubai

Saudi Telecom falls on weak Q2 earnings

An investor (L) gestures to an electronic display board at the Dubai International Financial Market, March 24, 2010.

An investor (L) gestures to an electronic display board at the Dubai International Financial Market, March 24, 2010.

REUTERS/Mohammed Salem

Major stock markets in the Gulf were subdued on Thursday, with Dubai hurt by losses in its banking shares.

Saudi Arabia's benchmark index was flat, with Saudi Telecom Company retreating 2.1% after it reported a decrease in second-quarter profit.

The kingdom's finance minister said on Wednesday that July data is promising for an economic recovery, though many uncertainties remain, and economic contraction will likely be less than the 6.8% predicted by the International Monetary Fund. 

Dubai's main share index retreated 0.6%, weighed down by a 1.2% fall in Emirates NBD Bank and a 1.5% decrease in blue-chip developer Emaar Properties.

Elsewhere, Dubai Islamic Bank was down 0.5%.

On Wednesday, the United Arab Emirates' largest sharia-compliant lender reported a net profit of 1.01 billion dirhams ($274.99 million) in the second quarter, down from 1.38 billion dirhams a year ago. 

In Abu Dhabi, the index closed flat. Dana Gas rose 3.6%, while Emirates Telecommunications Group was up 0.2%.

The Qatari index slipped 0.2%, with Barwa Real Estate Company falling 3.5% and telcoms firm Ooredoo losing 1.8%.

But Qatar International Islamic Bank added 0.6% following an increase in first-half net profit.

Separately, Qatar Airways is seeking at least $5 billion in compensation from Saudi Arabia, the United Arab Emirates, Egypt and Bahrain for blocking it from their airspace, the state-owned carrier said on Wednesday.

Last week, the United Nation's highest court for disputes between countries sided with Qatar in its legal fight with the Gulf states that imposed an air blockade on Doha.

** Egypt was closed for a public holiday.

SAUDI ARABIA was flat at 7,427 points ABU DHABI ended flat at 4,261 points DUBAI fell 0.6% to 2,053 points QATAR eased 0.2% to 9,368 points BAHRAIN lost 0.6% to 1,285 points OMAN gained 1.2% to 3,564 points KUWAIT was up 0.4% at 5,279 points

($1 = 3.6728 UAE dirham)

(Reporting by Ateeq Shariff in Bengaluru, Editing by William Maclean) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))

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