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Thu 8 Nov 2012 11:05 AM

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Markets seen muted; Kuwait protests planned

Gulf trading is likely to be muted on Thursday, with Saudi Arabia's bourse closed for the weekend

Markets seen muted; Kuwait protests planned
Gulf trading is likely to be muted on Thursday, with Saudi Arabias bourse closed for the weekend.

Gulf trading is likely to be muted on Thursday, with Saudi Arabia's bourse closed for the weekend and further political protests planned in Kuwait.

Investors in Kuwait are wary of increasing their market exposure ahead of a joint demonstration by opposition groups on Sunday against new voting rules as a standoff with the government intensifies ahead of an election on December 1.

The benchmark has fallen 3 percent since October 21 as protests in the country intensified.

In Abu Dhabi, the top two developers Aldar Properties and Sorouh Real Estate posted quarterly profit growth on Wednesday but both closed 1.5 percent lower at AED1.32 and AED1.31 respectively.

Aldar's next technical resistance is at AED1.35, MENA Corp says in a note.

"The market moved against plan [on Wednesday] and the stop loss level at AED1.33 was hit. Now we are looking for the next opportunity to enter the market," it says, adding Aldar's nearest support level is at AED1.30.

Elsewhere, Bahrain Telecommunications Co (Batelco) is suing ex-partner Siva Ltd for US$185m, claiming the Indian firm has failed to adhere to a settlement agreement over their joint venture S Tel.

Gulf investors may also take cues from weak global markets. Asian shares extended losses on Thursday as investors worried about the fiscal crisis in the United States and the European economy's further deterioration.

Brent crude rose 57 cents to US$107.43 a barrel, as an almost 4 percent slump in the previous session, its biggest fall in about a year, lured in some buyers.