Upbeat global markets likely to boost Gulf bourse

Upbeat global markets are likely to boost sentiment on Middle East bourses after Cyprus made a deal with lenders
By Reuters
Mon 25 Mar 2013 11:38 AM

Upbeat global markets are likely to boost sentiment on Middle East bourses after Cyprus made a deal with lenders for a 10 billion euro ($13 billion) bailout to avert a financial collapse.

Contagion impact from the small Mediterranean island on Middle East companies would have been limited in reality, but Cyprus's recent travails have made regional investors jittery, especially with little other news to trade on.

Dubai builder Arabtec will be in focus after it signed a 500 million dirham ($136 million) contract to build a 23-storey hotel and residential complex in Cairo.

Shares in Arabtec rose 3.8 percent to 2.18 dirhams on Sunday.

"Buy position holders should take profit at a target of near 2.50 dirhams," MENA Corp says in a note, urging investors not to buy Arabtec shares at current prices.

Also in the United Arab Emirates, energy firm Dana Gas postponed the shareholder vote for restructuring of the $920 million sukuk to April 23 after a meeting on Sunday failed to meet the required quorum.

Elsewhere, Saudi Arabia banks may attract increased interest after sources said a $2 billion loan to fund the construction of the Rabigh 2 independent power project should be signed by the end of the month.

Local banks financing the deal are Alinma Bank, Al Rajhi Bank, Banque Saudi Fransi, National Commercial Bank and Samba Financial Group.

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