Kuwait index falls tracking global markets

Kuwait's index fell, tracking global markets, in the absence of any major positive catalysts and with traders expecting a downward trend to continue.

The bourse fell 0.4 percent to 6,490 points.

"In the last couple of days there were comments from ministers and from large investors...that spread a negative sentiment," said a Kuwait-based trader.

"It is basically about how in the long-run some companies, mainly in investment and real estate, should be removed from the market," the trader added. "Which in itself is not a bad thing in the long run."

Zain fell 1.7 percent, albeit on low volumes.

"In the short-to-medium term we still see negative sentiment dominating," the trader said.

Qatar's index fell 0.5 percent, while Oman's bourse gained 0.2 percent to 6,230 points.

Ahli Bank slipped 0.4 percent despite half-year net profit almost doubling compared to the corresponding period of 2009, although the stock is up 5 percent in July.

"Improvement in total operating income and cost reduction led to bottom line growth," said Gunjan Gupta, head of research at Oman Arab Bank.

"Overall volumes and turnover for the market are lower, impacted by global markets sluggish performance and downward movement of oil prices."

Saudi stocks rose, recouping some losses from the previous sessions, led by heavyweights Saudi Kayan and Saudi Basic Industries Corp (SABIC).

Saudi Kayan said on Saturday it expects to start trial operations at its petrochemicals complex's main units in the third quarter of this year.

Saudi Kayan's shares gained 0.9 percent, while trading volumes were today's third-highest.

SABIC, which may post its results in the following days, rose 1.1 percent.

The main index advanced 0.2 percent to 6,149 points.

Aabar Investments ended 9.7 percent higher, after UAE government officials told the company to raise its buyout offer to minority holders by over a third, lifting the Abu Dhabi index.

Abu Dhabi's stocks advanced 0.1 percent to 2,526 points.

Aabar was told to increase its buyout price to 1.95 dirhams a share, drawing criticism from investors that the initial offer of 1.45 dirhams a share was too low.

"I believe that the small investor got mostly hurt in this, and he is the one the regulator is trying to protect the most in this market, and that is not what happened here," said Mohamed Ali Yasin, CEO of Shuaa Securities.

Aabar's gains helped more than offset declines in Dana Gas and Bank of Sharjah, which fell 1.4 percent and 4.9 percent respectively.

Dubai's index ended 0.8 percent lower to 1,508 points, despite a strong performance from du, which advanced 2.5 percent.

Property stocks underperformed following a report from Fitch, which said these companies face difficulties repaying upcoming maturities. (Reuters)