Dubai seen flat; Asian gains may support Gulf

Dubai's index fell 0.8 percent amid profit-taking and may trade sideways until further catalysts
Dubai seen flat; Asian gains may support Gulf
By Reuters
Mon 30 Apr 2012 10:49 AM

UAE's Emaar Properties is expected to see interest from foreign investors on Monday after reporting first-quarter earnings over the weekend, while gains in Asian shares may spur some buying in local equities.

Emaar gained 0.3 percent in the previous session in muted trade after it said first quarter profits rose 44-percent on Saturday.

"Clearly it's not going to hit Western institutional radars until today. Expect some delayed reaction in Emaar," says Julian Bruce, EFG-Hermes director of institutional equity sales.

Aldar Properties climbed 4.4 percent to a two-week high on Sunday, after it also reported higher results on Saturday.

Dubai's index however fell 0.8 percent amid profit-taking and may trade sideways until further catalysts.

Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, will be in focus after saying its first-quarter net profit rose 11 percent, in line with one analyst's forecast.

Elsewhere, Qatar Telecom on Sunday reported a 12 percent drop in first-quarter net profit, but still beat forecasts.

Qatar's index rose 0.3 percent on Sunday to 8,688 points, trimming 2012 declines to 1 percent.

"Medium-term investors should be aware as the (Qatar) index is still hovering near the moving average for this period at 8,700 point, while long-term investors can stay in the market as long as the index is closing above 8,540 point," Global Investment House says in a note.

In Kuwait, NBK Capital cut its Jazeera Airways price target to 0.41 dinars (US$1.48) from KWD0.450 with a 'hold' recommendation.

Overseas, Asian shares rose on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve.

Brent June crude was down 22 cents to US$119.61 per barrel by 0437 GMT as economic woes in developed economies stoked fears of lower fuel demand.

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