Font Size

- Aa +

Thu 28 Jul 2011 11:20 AM

Font Size

- Aa +

Dubai slumps to 19-week low; Dana gas soars

Oman hits two-year low; Nawras drags after second quarter results

Dubai slumps to 19-week low; Dana gas soars
Qatari investor stock exchange

Dubai's shares slumped to a 19-week low, tracking losses in
global markets on rising concerns about a US debt default but Abu Dhabi's Dana
Gas bucked the trend and jumps on possible bid takeover talks.

Dubai's index eased 0.09 percent to 1,506 points, its lowest
close since March 17.

Bellwether Emaar Properties was the main drag, falling 1.4
percent.

"So far, the market has been driven by what's going on
in US and Europe rather than fundamentals of companies here," said Hans
Zayed, Rasmala head of research.

"If we get some solution on the debt situation that
would certainly help the markets."

Abu Dhabi's index shed 0.5 percent to 2,628 points, a fresh
eight-week low.

Dana Gas soared 5.1 percent after reports it is the target
of a possible takeover bid by investment vehicle Vallares.

Vallares, a bid vehicle targeting emerging market oil assets
backed by financier Nat Rothschild and former BP boss Tony Hayward, is
understood to be interested in upstream assets in Egypt and Kurdistan.

Dana's shares accounted for two-thirds of the total volumes
on the emirate's index.

Sorouh Real Estate fell 1.6 percent after it reported a
four-fold surge in second-quarter net profit but missed analysts' average
estimate.

Elsewhere, Qatar's index climbed 0.03 percent to 8,377
points.

Commercial Bank of Qatar (CBQ) rose 1.9 percent after
reporting a 24.9 percent jump in second-quarter results on Wednesday.

"CBQ results were extremely good-you could expect a
better performance when volumes pick up," said Zayed. "Overall banks
will bode well for some rally after Ramadan and better volumes as well."

Oman's shares touched a two-year low amid weak global sentiment and disappointing quarterly results by telecoms operator Nawras weighed on the index.

Shares in Nawras dropped 3.6 percent. It reported a 13 percent decline in quarterly profit due to higher operating costs and fixed-line expenses.

The benchmark slipped 1.3 percent to 5,849 points, its lowest close since July 2009. Most shares end lower.

Global stocks fell to their lowest in more than a week on Thursday, knocked down by mounting concerns about a US debt default which also kept the dollar subdued against the safe-haven Swiss franc and the yen.

"The market clearly needs a trigger," says Kanaga Sundar, Gulf Baader Capital Markets head of research in Muscat. "The global sentiment is causing doubts in the near term and investors will continue to follow the wait and watch policy."

Heavyweights Bank Muscat dipped 1.6 percent, National Bank of Oman decreased 1.5 percent and Renaissance Services dropped 4.4 percent.

In Kuwait, large-caps weighed on the index which ended 0.5 percent lower at 6,036 points, an eight-day low.

Commercial Bank slumped 4.6 percent to 0.83 dinars. Goldman Sachs slashed its price target on CBK to 0.84 dinars from 0.93 dinars on Tuesday, citing weak loan growth and high cost of risk.

Gulf Bank fell 2 percent and Kuwait Finance House shed 1.1 percent.