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Mon 28 Jun 2010 10:20 AM

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Etisalat stocks rise to lift Abu Dhabi, Dubai down

UPDATE 3: Stock climb 1.5%, while Kuwait's index ends lower as Saudi bourse declines.

Etisalat stocks rise to lift Abu Dhabi, Dubai down
MARKET FORCES: Kuwaits index fell 0.2 percent to 6,560 points in early trade. (Getty Images)

Emirates Telecommunications Corp (Etisalat) rose after saying it had not made a bid to a buy a stake in Kuwait operator Zain, helping Abu Dhabi's index end higher, but Dubai fell again.

Etisalat, the largest listed company in the UAE, climbed 1.5 percent, helping the Abu Dhabi index edge up 0.08 percent to 2,553 points, despite losers outnumbering gainers 17 to five.

Aabar Investments fell 6.3 percent to a 16-month low, extending losses since saying it may delist from the bourse.

Dubai's benchmark declined for a fourth day in five, dipping 1.2 percent to 1,515 points.

Property-related stocks dominated trade. Emaar Properties fell 2.1 percent, Deyaar lost 4.4 percent and Arabtec dropped 2.2 percent, with this trio accounting for nearly three-quarters of all shares changing hands.

Dubai house prices are not seen recovering before 2011 at the earliest while oversupply in commercial property will boost vacancy rates to more than 50 percent next year Jones Lang LaSalle said on Sunday.

"We are seeing no institutional flow this week, its been all a retail game," said Saad Al-Chalabi of Al Ramz Securities.

"Retailers have been working on a few small names mostly intraday trading. The market should test the previous lows and possibly continue lower in light of the negative global expectations for equities."

Saudi Arabia's index ended lower for a fourth session in five, with fears over the global economy outweighing expectations for strong domestic quarterly earnings.

Banque Saudi Fransi fell 1.6 percent, Arab Bank lost 1 percent and Saudi Electricity Co dipped 0.7 percent.

"International markets look like they will continue to correct and that will affect our market as well, but investors should see any declines locally as an opportunity to buy, not to sell," said Youssef Kassantini, a Riyadh-based financial analyst.

"Our market has strong fundamentals and Q2 results should be good, especially in the petrochemicals sector."

The index fell 0.3 percent to 6,303 points.

Kuwait's index ended lower for a fourth day on low volumes as retail and institutional investors stayed away and the benchmark could retrace to its March 2009 low, a broker said.

Zain ended unchanged, with investors little moved by Emirates Telecommunications Corp (Etisalat) saying it had not made any proposal or bid to buy a stake in its Kuwait rival.

"Zain is like Scarlett in Gone With The Wind -- it's drama after drama, so we're used to these rumours," said a Kuwait trader who asked not to be identified.

Commercial Bank and Gulf Bank fell 2.3 and 3.6 percent respectively.

The index dropped 0.2 percent to 6,558 points.

"Kuwait continues to suffer low volumes and the market is not moving," says the trader.

"The small caps took a hit today and everyone is talking about the market revisiting the March 2009 lows. You can't make a quick buck when everyone is on the same side. Institutions, smart money and most retail investors are out of the market."

The Kuwait benchmark ended at 6,392 points on March 1, 2009, its lowest close of the past five years.

Qatar's measure fell 0.3 percent to 7,041 points, its fourth decline in five sessions.

Industries Qatar dipped 0.8 percent, mirroring a 0.6 percent decline in oil.

Most stocks came under selling pressure in Oman, with Bank Dhofar weighing on the index.

Bank Dhofar slipped 1.6 percent, and Omantel fell 0.3 percent.

The index ended 0.5 percent lower at 6,126 points. (Reuters)

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