Emaar stock slides for third trading day

Despite a positive in early trading Emaar Properties fell for a third day trading on the back of its merger plans.

Emaar Properties dropped 1.8 percent to AED2.78, retreating from an intraday high of AED2.94 and taking its losses to 17 percent since it announced plans to merge with three property units of Dubai Holding, which is owned by Dubai's ruler.

Dubai Financial Market climbed 3.8 percent and Arabtec added 1.9 percent.

Dubai's index fell 0.6 percent to 1,784 points, sliding from an intraday high of 1,848.

Banks fell as investors fretted over potential writedowns relating to the troubled Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi Group & Bros, which are restructuring billions of dollars of debts.

On Monday, the UAE central bank governor said UAE banks have "significant" exposure to the two firms, with all Gulf countries exposed.

"The governor was very vague as to which banks are exposed and uncertainty surrounds all bank stocks," says Ayman el-Saheb, Darahem Financial Brokerage director of operations.

"When we get explicit conformation of banks' exposure we will start to see selective moves up or downwards."

Dubai Islamic Bank dropped 2.5 percent, taking its losses to 23 percent since June 14, while Emirates NBD has fallen by 15 percent over the same period after slipping 0.6 percent on Tuesday.

Abu Dhabi's index closed higher for a second day, with property and energy stocks among the major gainers.

Aldar Properties climbed 4.5 percent and Dana Gas rose 6 percent.

The benchmark climbed 1.4 percent to 2,631 points, only its third gain in the past two weeks, during which time it has fallen 8 percent.

Mobile Telecommunications Co (ZAIN) rose to lift Kuwait's index to a higher close after a newspaper reported the operator was willing to sell its African operations.

Zain climbed 3.5 percent. A company executive was quoted as saying the firm had received several offers for its African operations, including one from Europe's largest entertainment group Vivendi.

Zain is the only one Kuwait's six largest stocks to advance, with National Bank of Kuwait and Kuwait Finance House losing 1.5 and 3.2 percent respectively.

Kuwait's measure rose 0.9 percent to 8,080 points, its first gain for four sessions.

Qatar National Bank (QNB) climbed 1.4 percent after announcing plans to float its Syrian unit, helping Doha's index end higher for the first session in three.

The lender said it will sell 34 percent of its Syrian unit in a public offering to raise 1.7 billion Syrian pounds ($37 million).

Industries Qatar and Doha Bank climbed 1.8 and 1.7 percent respectively. The index rose 0.9 percent to 6,492 points as volumes fell to an eight-week low.

Bahrain's index climbed 0.1 percent to 1,582 points, its first positive close for seven trading days.

Oman's index ended higher, snapping a five-session losing streak.

The benchmark advanced despite its three most-traded stocks all declining. These include Al Jazeira Services, which fell 3.3 percent and Bank Sohar, which was down 1.9 percent.

Oman Telecommunications (Omantel) and Raysut Cement lifted the index, climbing 0.6 and 1.6 percent respectively.

Oman's measure rose 0.2 percent to 5,612 points. Volumes hit a week-high.

"The market traded in a very narrow range today, opening slightly higher, before seeing some profit-booking," said Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat.

"It is the last day of the quarter and there were efforts to keep the market higher to boost portfolio valuations."

Saudi Arabia's index ended higher for a second session, despite none of its four most-traded stocks advancing.

Saudi Telecom Co added 2.5 percent and Riyad Bank rose 2.3 percent. Rabigh Refining and Petrochemical Co climbed 2.6 percent, but rival Saudi Basic Industries Corp (SABIC) ended flat.

The index climbed 0.8 percent to 5,596 points.

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