Bahrain spoils positive day for Gulf exchanges

UPWARD MOVE: Most Gulf markets moved into positive territory on Tuesday. (Getty Images)

Logistics provider Agility rose 6.4 percent after announcing a slight fall in first-quarter profit, lifting the Kuwait index to its highest close of 2009.

The benchmark climbed 0.9 percent to 7,699 points, its seventh advance in eight sessions, although all of the gains were less than one percent.

Kuwait's upcoming parliamentary elections on May 16 will be critical for the market, with the new parliament's first task to include ratifying a $5bn stimulus package for the country's finance sector.

This has been approved by the Kuwait Emir, but needs to be rubberstamped by parliament before the funds are deployed.

This could lead to market uncertainty, which would be negative for stocks, analysts said.

Mobile Telecommunications Co (ZAIN) rose 2.5 percent after saying it would cut 2,000 jobs from its 15,500-strong workforce.

"The market will consolidate in the near term," said Shahid Hameed, Global Investment House head of asset management for the Gulf.

"Investors are waiting for Zain's results, which could come out this week. As the bellwether for the market, Zain's figures will help set the trend for the market for the next couple of weeks."

Dubai's index closed higher for the fourth session in five, but late selling sees it fail to end above a key resistance level.

The benchmark rose 0.7 percent to 1,633 points, after hitting an intraday high of 1,662. Analysts say there is strong resistance at 1,650 points. Trading volumes hit a 13-session high of 668 million shares.

Logistics firm Aramex jumped 12.8 percent, to take its gains to 22 percent since announcing a 19 percent rise in first-quarter profits late Sunday.

Emaar Properties added 2.1 percent, but rival developers Union Properties and Deyaar both declined by more than 1 percent.

Abu Dhabi's benchmark also ended higher, its third rise in four sessions, climbing 0.6 percent to 2,579 points. Aldar Properties and Sorouh Real Estate added 6 and 5 percent respectively, but Emirates Telecommunications Corp (Etisalat) weighed on the index, falling 0.5 percent.

Abu Dhabi Commercial Bank slid 1.9 percent.

Saudi Basic Industries Corp (SABIC) surged 9.8 percent to lift the Saudi index to a fresh 25-week closing high.

The benchmark rose 1.1 percent to 5,800 points.

"SABIC fell 80 percent, but has now rebounded strongly," said Hisham Tuffaha, Bakheet Investment Group's head of investment research.

"It should see some profit taking in the next two weeks, without any significant news to maintain or enhance its stock performance."

The rest of the index was mixed, with eight of the 13 largest companies retreating, while small cap stocks, particularly insurance firms, are also under pressure.

The Bahrain measure ended lower, falling 0.5 percent to 1,597 points.

Barwa Real Estate propelled Qatar's benchmark to a 16-week closing high after the developer revealed plans to expand into the commodity and finance sectors.

Barwa and Qatar Real Estate Investment Co both climbed more than six percent.

The two firms are expected to conclude a merger later this year.

The index climbed 2.5 percent to 6,027 points, its ninth rise in 10 session.

The Oman benchmark ended higher for the fourth session in five, rising 0.7 percent to 5,250 points.

Market heavyweights Bank Muscat and Oman Telecommunications (Omantel) climbed 3.2 and 1.3 percent respectively to lift the benchmark, as losers outnumber gainers 14 to 12.

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