Dubai ends up, Taqa leads Abu Dhabi gains

STOCK WATCH: Kuwait's Zain said on Saturday it would pay $324m for a 31% stake in telecom firm Wana, a unit of Morocco's biggest conglomerate ONA. (Getty Images)

The Dubai index DFM ended up 1.41 percent at 1,525 points, its largest rise in more than a week as investors target stocks they consider inexpensive, while the Abu Dhabi benchmark ADI advanced for the first session in seven.

National Central Cooling Company (Tabreed) and Islamic Arab Insurance Co were the benchmark's top gainers, surging 12 percent and 8.6 percent respectively.

"Investors seem to be targeting stocks that are priced below 1 dirham ($0.272), because they can buy these shares in larger volumes and pay less commission and brokerage fees," said Ayman El Saheb, director of operations at Darahem Financial Brokerage.

Dubai Financial Market and Arabtec Holding dominated trading to claim more than half of the index's turnover as bargain hunters snapped up the stocks, among the hardest hit in the collapse of the Dubai index as a result of the global financial crisis.

DFM rose 5.98 percent, while Arabtec gained 4.35 percent.

The index has fallen 74 percent since the start of 2008.

"Arabtec has fallen from two dirhams since the start of the month, but its move into the Saudi market has helped stem its losses," says Saheb.

Arabtec said earlier this month it had set up a Saudi arm called Arabtec Saudi Arabia, with expected turnover in its first year of over 1.5 billion riyals ($400 million).

The Abu Dhabi benchmark climbed 0.41 percent to 2,328 points.

Abu Dhabi National Energy Co (TAQA) added the most points to the index, rising 8.28 percent. First Gulf Bank and Abu Dhabi Commercial Bank gained 2.81 percent and 2.42 percent respectively.

Oman's main index MSI ended up 0.54 percent at 4,676 points, following two sessions of losses.

Heavyweight Bank Muscat added the most points to the index, soaring 9.34 percent.

Oman Cable Industries Co ended up 3.94 percent.

Qatar's main index QSI rose more 3.02 percent to 4,572 points, led higher by Qatar Gas and Transport (Nakilat), which climbed 6.21 percent.

Investors may be buying into the market after the Qatari unit of Vodafone Group said it would launch its IPO on April 12, later than expected, said Samer Al Jaouni, general manager at Middle East Financial Brokerage, allowing them to push back the time at which they liquidate some of their positions in order to invest in the offer.

"Maybe today we are seeing some positive reaction to the Vodafone IPO news because people expected it in March and now it is in April. We may see some pressure a week or 10 days before the IPO," Jaouni said.

Vodafone Qatar's IPO is the first in the Gulf Arab state in more than a year after the bourse regulator froze issues amid worsening local and global markets conditions.

Commercial Bank of Qatar and Industries Qatar rose 5.38 percent and 3.8 percent respectively.

Saudi shares declined in early trading, led lower by Etihad Etisalat, which fell 1.18 percent.

Heavyweight Saudi Basic Industries Corp (SABIC) fell 0.55 percent. Last week Shuaa Capital said the company could post a first-quarter loss and its plastics unit was likely to lose money and burn cash, both of which pose short-term risks for the stock.

The Saudi index TASI fell 0.45 percent to 4,251 points, a day after posting its biggest one-day gain since the end of January.

Shares in Kuwait edged up 0.01 percent to 6,553 points in thin trading as investors remain cautious, fearing further fallout from the global financial crisis.

"Volumes are still low. Liquidity is definitely a problem in Kuwait," said Talal Al Loghani, portfolio manager for the GCC at Noor Financial Investment Co in Kuwait.

"Banks are not lending for these kind of activities ... and investors are staying away from the market, they prefer to sit on their cash to service their debts for the upcoming year at least ... they want to wait until things settle down," he said.

That only 30 percent of Kuwait companies have reported their annual results so far may be adding to investor worries, Loghani says. The deadline for companies to announce their earnings results is on March 31. If missed, trading in the company's shares is halted until the announcement is made.

Shares in Kuwait's Mobile Telecommunications Co (Zain) gained 3.9 percent, a day after it said it would pay $324 million for a 31 percent stake in telecom firm Wana, a unit of Morocco's biggest conglomerate ONA.

National Bank of Kuwait gained 3.85 percent.

Bahrain's main index BAX edged down 0.04 percent to 1,579 points.

Egypt's main stock index gained over 3 percent, led by a strong performance by Orascom Construction Industries, following a rebound by global markets.

Orascom Construction shares surged 7.05 percent to 137 Egyptian pounds ($24.17), while the benchmark EGX 30 index added 3.21 percent to 3,819.56 points. The broader EGX 70 index rose 2.64 percent to 469.12 points.

"The main thing is positive sentiments in the market. People are starting to regain their confidence," said Wafik Dawood, Senior Account Executive at Naeem Brokerage.

Egypt tracked gains by global stocks, which strode higher on Friday to cap their best week since a record surge last November as optimism that ailing U.S. banks are on the mend eased investor fears around the world.

Orascom Telecom , the most heavily traded share of the session, closed 2.4 percent up to 21.35 pounds. Orascom Telecom is expected to publish its 2008 earnings on Monday.

El Sewedy Cables , one of the biggest cable manufacturers in the Middle East, rose 7.39 percent in heavy trade to close at 43.15 pounds.

Egyptian real estate developer, Medinet Nasr Housing's shares were also heavily traded and climbed 10.97 percent to 21.25 pounds, traders said, as a result of a strong overall performance by the housing sector. (Reuters)

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