Most Gulf markets advance, tracking recent US gains

GULF MARKETS: Most finish higher, mirroring recent gains in US. (Getty Images)

Most Gulf Arab markets advanced on Monday, continuing to track end-of-week gains in US markets.

But UAE markets fell after Drake & Scull slumped more than 25 percent from its IPO price on its debut. The contractor closed at 0.74 dirham, down from its IPO price of 1 dirham.

The Dubai index declined for the fourth time in five sessions slipping 1.04 percent to 1509 points, while Abu Dhabi, the Gulf's best performer this year, shed 0.74 percent to 2311 points, paced by National Bank of Abu Dhabi.

"People continue to be short-sighted and vulnerable to global moves in oil and the markets," said Haissam Arabi, chief executive and fund manager of Gulfmena Alternative Investment.

World stocks climbed again on Monday for their fifth session gain in a row, lifted by hopes that the US economic downturn may be bottoming out.

Shares of Bank Muscat surged 7.97 percent to a higher close for a second session on speculation it could sell a stake in an Indian bank, lifting Oman's benchmark.

Gulf Baader Capital Markets said in a research note on Monday that Oman's largest lender may sell a stake in HDFC Bank before the end of the quarter.

"It started yesterday. Everybody thinks it is about this bank (stake) sale in India, which is why the (Bank Muscat) stock is moving," said Muscat-based EFG-Hermes analyst Alaa El Din Moustafa.

Bank Muscat officials declined to comment when contacted by Reuters.

Shares of Commercial Bank of Qatar and Barwa Real Estate Co helped extend Doha gains into a second session as investors continued to buy after the Qatari unit of Vodafone Group said it would launch its IPO later than expected.

This would allow them to push back the time at which they liquidate some of their positions in order to invest in the offer.

The Qatar bourse finished 1.07 percent higher at 4,640 points.

Saudi shares extended gains despite oil prices falling 4.5 percent to around $44 a barrel on Monday - Al-Rajhi Bank gaining 5.12 percent and Saudi Basic Industries Corp (SABIC) rising 4.81 percent.

The Saudi index advanced for a third session, adding 1.95 percent to 4,364 points.

In Kuwait the index edged up to a nine-session high, adding 0.62 percent to 6,627 points. Telecommunications giant Zain rose 2.44 percent.

Bahrain's index added 0.26 percent to 1,585 points.

Bucking the general upbeat trend Egypt's benchmark index declined more than one percent to 3780.84 points as the market digested full year results from two of the country's biggest firms.

Orascom Construction, the single biggest weight on the benchmark EGX 30 index, dipped 3.38 percent to 133.10 Egyptian pounds ($23.61) by the close despite posting a net profit of $719.8 million, an increase of 230 percent on the previous year.

Traders said the stock fell after heavy buying in recent days.

"There were not really any big surprises (in the results) ... it is normal that traders take some profit," said Karim Hosny from Pharos Securities.

Wafik Dawood from Naeem Brokerage said in recent years both OCI and Orascom Telecom (OT) have pulled back on the day they release their results after rising in the preceding days.

"That is the psychology of the emerging market," he said.

Telecom Egypt , Egypt's fixed-line monopoly and fourth biggest weight on the index, shed 2.96 percent to 14.40 pounds after its fourth-quarter net profit fell 28 percent as the company was hit by the economic slowdown. Its full year profit was 10 percent higher at 2.79 billion pounds.

Shares in real estate developer Palm Hills jumped 19.33 percent to 8.15 pounds after it said its full year net profit trebled to 658 million pounds as it diversified its customer base. (Reuters)

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