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Thu 12 Apr 2007 02:51 PM

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Gulf market report - 12 April 2007

Shares in the Dubai Financial Market company rose today - even though the DFM index didn't.

The contrasting performance of the Dubai Financial Market General Index (which closed down 0.11% to 3,872.15) and shares in the exchange itself (which rose 2.16% to close at AED2.34) was met with surprise by some financial analysts, but the feeling is that today's results highlight the increasing positive sentiments in the market place.

"It was interesting to see the DFM [company shares] come up as one of the biggest gainers. However, it is the only stock market listed in the region. When you have a positive view on the market, as we are seeing now, if you have a stock market which is listed, investors will buy it," said Amro Diab, analyst for EFG-Hermes.

Profit taking was one of the reasons given for why the DFM index did not repeat yesterday's performance and ended at a loss.

"The index has gone up 3 per cent since Sunday and has traded over AED1billion at the start of the week. Hence, some minor profit taking was to be expected today," said Diab.

It is expected that the DFM index will continue to rise as Diab pointed out that inflows from fellow GCC institutions were adding to the strength of the market. He added: "I believe we are in for another rally, but we have to wait for the fourth quarter results to come out." More than 415 million shares exchanged hands, topping the AED1billion mark.

Today's biggest gainers on the DFM were the Commercial Bank of Dubai (CBD) which went up 4.9% to AED7.5, followed by insurance giant Gulf General Insurance Company (GGICO), which closed up 2.39% to AED5.99. Surprisingly, telecoms firm du rose 2% to AED5.09 having closed been one of the biggest losers at the start of the week.

Among the top three losers was Tamweel which saw its share plummet 3.84% to AED3.59. Though Mr Diab remarked: "Tamweel has gone up a good 20 per cent this week. It still looks good for them."

Conversely, Abu Dhabi has been consistent with its performance having closed up 1.29% at 3,036.35. The only sector not to have performed well was insurance which went down 1.16% to 2,975.42.

Bahrain's main stock index closed higher for the first day in three, paced by Bank of Bahrain & Kuwait. The index, the third-worst performer in the Gulf this year, was up 0.02% at 2,128.85 points. Bank of Bahrain climbed 0.47%. The index has closed lower for three of the last six trading days, and is down 4.02% this year to Wednesday's close.

Qatar's main stock market index closes higher for a sixth consecutive trading day, paced by Qatar National Bank and Industries Qatar. The index, the worst performer in the Gulf this year, is up 0.41% at 6,173.03 points.

QNB rises 2.8% and Industries Qatar 0.24%. The index was still down 13.1% this year to Wednesday's close.

Oman's main stock market index closes lower for a second day. The index, the second-best performer in the Gulf this year, drops 0.14% to 5,656.39 points.

Bank Dhofar and Oman International Bank pace, falling 0.24% and 0.51% respectively.

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