We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 28 Jul 2010 10:11 AM

Font Size

- Aa +

SABIC heads Saudi losers as rally stalls

UPDATE 6: Dubai's DFM ends higher to claw back the previous day's losses.

SABIC heads Saudi losers as rally stalls
STOCK REPORT: NBAD shares rose in early trade on the back of strong second-quarter profits. (Getty Images)

Saudi Basic Industries Corp (SABIC) was the main drag as the kingdom's index TASI declined, while other bluechips also fell as traders book gained from the Tuesday's month-high.

SABIC ended 0.9 percent lower, falling for a third day in four. On Sunday, affiliate Saudi Kayan Petrochemical Co said it needed more money to cover a $2.4bn rise in building costs for a new plant. Kayan ended flat.

Etihad Etisalat dropped 1.4 percent, easing from Tuesday's 29-month high. SABB fell 0.9 percent.

The index fell 0.1 percent to 6,267 points, only its second decline in six sessions.

Dubai's index DFM ended higher to claw back the previous day's losses as Emaar Properties halted a three-day losing streak.

Emaar climbed 1.3 percent to AED3.25, trimming its losses to 3.6 percent since reporting disappointing second-quarter results.

Morgan Stanley on Wednesday started coverage of Emaar, giving the developer an overweight rating and a price target of 4.30 dirhams, saying it offered strong recurring revenue through malls and hotels in Dubai as well as exposure to non-UAE property markets.

The index climbed 0.9 percent to 1,513 points.

"This is just a technical move - we are largely decoupled from international factors and have our own worries," said Mohamed Khaled, Prime Emirates relationship manager.

"Yesterday's close was slightly below 1,500 points, which is a critical support, so there's buying at these levels. If the market can hold above 1,500, it will target 1,560, with a break above 1,530 a bullish move."

National Bank of Abu Dhabi hit a two-month closing high after its earnings beat estimates, but the emirate's index ADI ended lower as property stocks weighed.

NBAD climbed 3.2 percent to its highest finish since May 23. The lender, the UAE's largest by market capitalisation, reported a 10 percent rise in second-quarter profit, helped by higher revenues and lower provisions.

Sorouh Real Estate fell 1.7 percent, declining for a second day since its results missed forecasts, while rival Aldar Properties dropped 3.2 percent to a 16-month low. The latter is likely to make a second-quarter loss of AED130m, according to analysts polled by Reuters.

The index fell 0.5 percent to 2,547 points.

Commercial Bank of Qatar hit a two-month closing high after its earnings beat expectations, helping Doha's index end higher for a sixth session in eight.

CBQ climbed 2.7 percent to 69.50 riyals, its highest finish since May 20. The lender's second-quarter profit rose 23 percent.

Credit Suisse on Wednesday cut its price target for CBQ to 90 riyals from 93 riyals, keeping an outperform rating.

Qatar Gas Transport Co (Nakilat) rose 1.1 percent.

"We believe there are some stocks that have seen their bottom prices for the year and now provide a big buying opportunity," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor.

"We're looking at companies with stable revenues that enable us to model future earnings. There's a good opportunity to buy stocks related to the gas sector. These have long-term contracts and Qatar's gas exports are increasing."

The index climbed 1.1 percent to 7,016 points, a two week high.

"Volumes will continue to be low except when results come out as investors reshuffle their portfolio, so trading will briefly increase on a stock specific basis," added Pramberger.

Kuwait's index slipped 0.3 percent to 6,668 point, its first decline in six sessions as investors booked profits.

Oman's index hit a five-week high as investor demand pushes up bank stocks and other bluechips. Bank Muscat climbed 1.2 percent, Bank Dhofar added 3.2 percent and Raysut Cement gained 3.9 percent. The index climbed 0.9 percent to 6,262 points, its highest close since June 22 and biggest gain for three weeks.

"Despite mixed results, Oman's index continued its upward trend," said Gunjan Gupta, head of research at Oman Arab Bank. "We expect the next resistance level will be under 6,267 points. The liquidity is higher as buyers are superior compared to sellers by 61 percent, which is pushing the market up.

"For the past two days we've noticed more speculative activity on Al Anwar Holding." Al Anwar climbed 1.8 percent and is the most active stock, accounting for almost a sixth of all shares changing hands. (Reuters)

Arabian Business: why we're going behind a paywall

For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.