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Tue 30 Mar 2010 11:04 AM

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Arabtec stock rises on Qatar, UAE contract wins

UPDATE 4: Shares surge to 12-week high, while Abu Dhabi index falls.

Arabtec stock rises on Qatar, UAE contract wins
MARKET FORCES: Emaar Properties and Deyaar shares also rose in early trade. (Getty Images)

Arabtec surged to a 12-week high, extending gains after the builder won contracts worth $370 million in Abu Dhabi and Qatar, helping Dubai's index rebound.

Arabtec climbed 6.7 percent to its highest close since January 7. Dubai Islamic Bank rose 2.3 percent and investment bank Shuaa Capital jumped 8.9 percent.

The index climbed 1 percent to 1,850 points, its third gain in four sessions.

"There is a belief the market will hold around the 1,800-mark before it can break out to higher levels," said Mohammed Yasin, Shuaa Securities chief executive.

"It seems there's a growing belief among investors that the markets are regaining their attractiveness as a source of revenue generation."

Abu Dhabi's benchmark fell for a first session in six, slipping 0.2 percent to 2,925 points.

Sorouh Real Estate dropped 2.4 percent.

Mid-sized banks helped Kuwait's index end higher for a sixth session in seven, while Qatar edged up to a 24-week closing high.

Commercial Bank of Kuwait climbed 2.2 percent and Ahli United Bank added 5.3 percent. Boubyan Bank rose 1.9 percent, taking its gains to 15.2 percent since National Bank of Kuwait said it received approval to buy an additional 20 percent stake in Boubyan. NBK ended flat.

Zain and Agility were also unchanged. Zain's slated $9 billion asset sale to India's Bharti Airtel faces a new potential hurdle as the government of Gabon raised a regulatory objection to the deal.

"There is a slight overhang from Zain and Agility," said a Kuwaiti-based trader who asked not to be identified. "We want Zain's deal to go throught no matter what."

Agility was down 45 percent since it was indicted by a US court on fraud charges in November.

Industries Qatar cimbed 0.9 percent, buoyed by steady oil prices, with crude holding above $82 a barrel.

The index rose 0.3 percent to 7,465 points, its highest finish since October 11.

Omantel fell 8.5 percent as the bluechip was paying out its dividend on Tuesday, dragging the entire market down.

Oman's index fell 1.1 percent.

"The trend is still good," said Adel Nasr, United Securities brokerage manager. "We expect everything to rebound tomorrow," he added.

Bank Muscat rose 0.7 percent and National Bank of Oman climbed 2.5 percent. Bahrain's index rose 0.7 percent, while Kuwait stocks advanced 0.2 percent. (Reuters)

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