Qatar slips as Iran tensions weigh

TENSIONS WEIGH: Doha's index has dropped for seventh straight trading day, while a slump on global markets pulled down UAE bourses. (Getty Images)

Qatar slipped almost 2 percent on Sunday as tensions over Iran's nuclear plans continued to cloud the Gulf Arab region's second-best performing index, with banking stocks leading the index lower for a seventh consecutive trading day.

Commercial Bank of Qatar and Qatar Islamic Bank fell 3.37 percent and 1.95 percent respectively, with the index closing 1.78 percent lower at 11,541.61 points, having traded at a two-month low of 11,411.50 points during the session.

Slumping global markets weighed on United Arab Emirates markets, where the benchmarks fell more than 1 percent.

First Gulf Bank (FGB) and Aldar Properties fell 1.79 percent and 2.83 percent respectively, pulling the Abu Dhabi index down 1.42 percent to 4,925.45 points.

In Dubai, Emaar Properties fell 1.46 percent and Dubai Investments Co slumped 3.72 percent.

Shares of Dubai Financial Market Co ended 2.42 percent lower after the company reported a second-quarter profit of 245.62 million dirhams ($66.88 million), its smallest quarterly profit in three quarters.

"The results were 10 percent below market expectations," said Anne Marie Browne, foreign institutional sales at Al-Futtaim HC Securities.

The benchmark closed lower for a second day, declining 1.13 percent at 5,287.63 points.

Saudi Arabia's main index advanced 1.67 percent to 9,145.03 points on hopes of strong profit growth in the second quarter, said Abdulla Al-Aqil, a trader at Samba Financial Group.

Saudi Basic Industries Corp (SABIC) and Samba Financial Group rose 2.64 percent and 5.80 percent respectively.

SABIC advanced after its steel unit signed a deal with Saudi Arabian Fertilizers Co (SAFCO) to set up a steel plant. SAFCO closed 1.46 percent higher.

Albilad bank surged 6.67 percent higher after it said on Saturday its second-quarter net profit rose 64.3 percent from the year-earlier period.

Yamamah Cement Co also declined 0.73 percent despite reporting a second-quarter net profit which beat all analysts' forecasts.

Muscat's main index ended higher for a second trading day, led by shares of Oman Cables Industry, which surged after the firm's first-half net profit more than doubled.

Oman Cables Industry closed up 6.05 percent and Raysut Cement 1.04 percent.

The index, the best-performing measure in the Gulf Arab region this year, advanced 0.25 percent to 11,746.96 points.

Shares of Mobile Telecommunications Co (Zain) jumped 5.48 percent, leading Kuwait's main index higher.

Zain advanced after the firm's chief executive said he expected EBITDA growth of about 20 percent in the first half of 2008, according to Al-Watan newspaper.

Kuwait's measure ended up 0.52 percent at 14,973.50 points.

Bahrain's benchmark ended 0.1 percent lower at 2,846.02 points, led by Bahrain Telecommunications Co (Batelco) and Arab Banking Corp, which slipped 0.49 percent and 1.01 percent, respectively. (Reuters)

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