DIB shares lead late rally to lift Dubai's index

Stocks reach a six-month high, gaining 5.1%, meanwhile Abu Dhabi index slips 0.8%
DIB shares lead late rally to lift Dubai's index
Stocks declined on Gulf indexes following the lead of global markets. (Getty Images)
By Reuters
Wed 20 Oct 2010 02:44 PM

Dubai Islamic Bank (DIB) led a late rally to reach a six-month high as the
emirate's index ended higher.

DIB gained 5.1 percent to AED2.46, its highest level since April 7.

"Investors are probably expecting its earnings to be positive," said
Vyas Jayabhanu, head of investments, Al Dhafra Financial Broker.

"It is seen as a company that does not have much exposure to bad
debt."

Dubai's
benchmark gained 0.6 percent to end at 1,755 points.

Emirates Telecommunication Corp. (Etisalat) dropped 2.1 percent, weighing on
Abu Dhabi's
index.

The telecom firm declined a day after it reported a 23 percent fall in
third-quarter net profit.

The Abu Dhabi
index slipped 0.8 percent to 2,786 points.

Bank stocks led a decline as Qatar's
index dropped to a two-week low with investors booking gains.

Commercial Bank of Qatar (CBQ) fell 2.6 percent, a day after reporting a
28.9 percent jump in third-quarter net profit. Doha Bank also slipped 1.8
percent. It posted a 37percent rise in quarterly net profit.

"We have seen profit-taking across the region today and this was seen
to be strongest in Qatar,"
said Shakeel Sarwar, head of asset management at Securities and Investment
Company Investment Co (SICO).

"Third-quarter earnings for banks have been good and there is no
fundamental reason for the decline except that investors are booking
gains."

The broader index slipped by 1.3 percent, its lowest since October 5, ending
at 7,723 points.

In Kuwait,
telecom firm Zain dragged the country's index down by 0.3 percent to 6,998
points. Zain ended 1.4 percent lower.

Saudi Arabia's index slipped in early trade as Saudi Basic Industries Corp. (SABIC) fell to its lowest since Sunday.

SABIC slipped 1.1 percent and the petrochemical index lost 1 percent.

"Saudi market is down as a result of global fundamentals," said Hesham Tuffaha, Bakheet Investment Group head of research.

"The driver of the market is petrochemical stocks, which are down due to oil prices."

Saudi Telecom Co (STC) gained 0.5 percent a day after it posted a better-than-expected 38 percent rise in third-quarter net profit.

The broader index slipped 0.8 percent to 6,212 points. (Reuters)

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