ENBD slumps to 25-week low on Dubai Bank takeover

Abu Dhabi's property stocks weigh on the benchmark; Qatari bourse ends higher
ENBD slumps to 25-week low on Dubai Bank takeover
Qatari investor stock exchange
By Reuters
Tue 11 Oct 2011 09:57 AM

Dubai-listed Emirates NBD's shares slumped to a 25-week low
on Tuesday after saying it will take over struggling Islamic lender Dubai Bank
on orders by Dubai's ruler, while Gulf markets were mixed in muted trade.

ENBD fell 1.6 percent to its lowest close since April 20.

"We need further information but it will definitely put
some pressure on financial for Emirates NBD," said Samer al-Jaouni,
General Manager of Middle East Financial Brokerage.

"Dubai Bank accumulated a lot of non-performing loans.
I couldn't see advantages out of this acquisition, which is most likely a
bailout," he added.

Dubai's index slipped 0.1 percent to one point away from
last week's seven month low.

In Kuwait, logistics firm Agility fell from Sunday's
four-month high after denying reports that it had won a military contract worth
up to $700 million.

Its shares, down 3.9 percent, resumed trading on Tuesday
after a one-day suspension. The bourse halted trading in Agility after it
rallying four straight sessions on rumours of a military contract.

The main index rose 0.2 percent to close at its highest
level since Sept 26.

Mabanee Co gained 1.2 percent and National Industries Group
rose 4.3 percent.

Elsewhere, Egypt's benchmark index recouped some of Monday's
losses, pushed higher by Citadel Capital .

Citadel jumped 6.3 percent as a foreign buyer bought more
than 5 million shares in the private equity firm, traders said.

Analysts say the stock weakened after a 1 billion Egyptian
pound ($167.6 million) rights issue was only partially subscribed.

Citadel launched a second-round rights issue on Monday. A
roadshow by investment bank EFG-Hermes could have drummed up foreign interest
in Citadel stock, traders said.

"This roadshow may have resulted in some interest in
the name. Citadel's been trading much lower than its enterprise value,"
said a trader at CIBC brokerage.

Among other gainers, Commercial International Bank climbed
1.5 percent and Orascom Construction jumped 6.4 percent.

Abu Dhabi's property stocks weighed on the benchmark with
Aldar Properties down 1.8 percent and Sorouh Real Estate slipping 2 percent.
The benchmark shed 0.2 percent.

In Qatar, the index rose 0.8 percent at a 10-day high with
financial stocks the main support.

Masraf Al Rayan gained 1.2 percent, Doha Bank climbed 2.2
percent and Commercial Bank of Qatar advanced 1.3 percent.

"Volumes are lower but still there is a belief of
strong results coming from banks. Institutionals are accumulating banks because
of historic attractive cash dividends at year-end," said Jaouni.

In the kingdom, Zain Saudi fell 1.7 percent after media
reports its chief executive officer Saad al-Barrak is expected to resign from
the board shortly.

The benchmark slipped 0.3 percent, ending a four-day winning
streak.

Petrochemical stock fell with Yanbu National Petrochemicals
Company (YANSAB) down 1.3 percent after net profit more than doubled in the
third quarter but still missed analyst expectations.

Saudi Arabian Mining Co (Maaden) shed 1.8 percent as
investors booked profits after the company swung to a third-quarter net profit
of SR27.4m ($7.3m), but the results missed analyst forecasts.

Tuesday's highlights:

Dubai:  the index
slipped 0.1 percent to 1,388 points.

Kuwait: the measure advanced 0.2 percent to 5,859 points.

Egypt: the index rose 2 percent to 4,018 points.

Abu Dhabi: the benchmark slipped 0.2 percent to 2,494
points.

Qatar: the index advanced 0.8 percent to 8,353 points.

Saudi Arabia: the index declined 0.3 percent to 6,118
points.

Oman: the index fell 0.1 percent to 5,561 points.

Bahrain: the measure climbed 0.2 percent to 1,156 points.

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