Kuwait hits all-time high, Oman slumps

The Kuwaiti stock exchange gained 0.25 percent to an all-time high of 15,654.80 points, extending its record-breaking rally into a seventh day, driven by banking shares.

The index, the third best-performing measure in the Gulf Arab region, is up nearly 25 percent this year, and has rallied almost 9 percent since April 27 when the market traded at a low of 14,372.40 points.    

"We're pretty positive on the Kuwaiti banking sector - the banks are making money from organic and non-organic growth," said Faisal Hasan, head of research at Global Investment House. "High petrodollar liquidity is trickling down to the corporate level."

National Industries Group Holding rose 1.41 percent and Global Investment House jumped 3.92 percent.

Banking stocks are recovering after a ruling in March by the central bank to curb lending sparked retail selling in the banking sector, said a trader who did not want to be identified Investors feared the decision would hit banking profits, he said.

Kuwait said banks cannot lend consumer borrowers more than the equivalent to 40 percent of their salary in an effort to control money supply.

Kuwait Finance House, the country's second largest company by market value has risen over 22 percent so far this year. National Bank of Kuwait, although only up 2.52 percent this year, has jumped nearly 12 percent since the end of May.

Shares of Bank Muscat and Bank Dhofar led Oman's main index to close lower.

Bank Muscat fell 1.34 percent and Bank Dhofar dropped 2.91 percent as Muscat's measure, the best-performing index in the Gulf Arab region this year, eased 0.85 percent to 11,550.11 points.

"The move lower is purely technical," said Sankar Kailasam, head of research at Gulf Investment Services.

Expectations of strong second-quarter results drove shares of Oman Flour Mills sharply higher which boosted Muscat's index in early trade. The stock ended up 6.3 percent.

"Oman Flour is continuing its way up on rumours of very good results," said Adel Nasr at United Securities.

Saudi Industrial Investment fell, reversing a three-day rally to lead Saudi Arabia's main index to a lower close.

Saudi Industrial slipped 2.33 percent, after having gained 6.8 percent in the rally, as the Gulf Arab region's
worst-performing measure closed 0.59 percent lower at 9,731.80 points.

"The main indicators suggest this is all profit taking," says Marwan Shurrab at Shuaa Capital.

Shares of Al Rajhi Bank eased 0.84 percent. Arab National Bank fell 2.29 percent.

Shares of Qatar Gas Transport Co. (Nakilat) and Qatar Islamic Bank dragged Qatar's main index lower.

Qatar's index dipped 1.28 percent 12,136.50 points as Nakilat fell 2.88 percent and Qatar Islamic Bank slipped 1.99 percent.

"We've seen some profit-taking today," said Bashar Issa, an analyst at Dlala Brokerage and Investment Holding. "All investors are waiting for second-quarter results."

Emirates Telecommunications Corp. (Etisalat) and Abu Dhabi National Energy Co. (Taqa) dragged Abu
Dhabi's index lower for a sixth session, and Dubai Islamic Bank and Dubai Financial Market Co. weighed on Dubai.

Etisalat closed 0.75 percent lower and Taqa 2.9 percent. The index slipped 0.77 percent to 4,998.33 points.

In Dubai, the main index closed 1.14 percent lower at 5,459.09 points, its lowest close in more than two months.

Dubai Financial Market fell 4.12 percent and Dubai Islamic Bank 1.70 percent.

Bahrain's main measure advanced, led by shares of Gulf Finance House and Bahrain Telecommunications Co. (Batelco) which rose 0.96 percent and 0.49 percent respectively.

The index closed 0.19 percent higher at 2,851.07 points.

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