Saudi stocks ends down, led by SABIC

UPDATE 4: Heavy buying pushes Deyaar to monthly high, while Abu Dhabi flat.
Saudi stocks ends down, led by SABIC
STOCKS REPORT: Abu Dhabi shares gained 0.1 percent to 2,554 points, in early trade. (Getty Images)
By Reuters
Wed 23 Jun 2010 10:33 AM

Saudi stocks retreated, led by heavyweight Saudi Basic Industries (SABIC), dragged by lower oil prices and weak global sentiment, but traders said the drop could be short-lived.

The index TASI fell 0.3 percent to 6,343 points, while SABIC declined 0.5 percent.

"The drop does not negate the recent bounce and while the retracement may initially push the index to 6,200, the odds continue to favour an extension to 6,750," said Shuaa Securities in a research note.

Dubai's index reversed its losses and ended 0.6 percent higher after a volatile trading day, as heavy buying pushed developer Deyaar to a monthly high.

Deyaar ended 13.7 percent higher.

"This is due to local buying where small stocks see huge volumes, it's short-term trading," said Musa Haddad, head of MENA equity desk at National Bank of Abu Dhabi.

The index gained 0.6 percent to 1,551 points.

In Abu Dhabi, Dana Gas dominated trading and ended 2.9 percent higher, after announcing its board had approved a 10-percent share buyback.

Abu Dhabi's index was flat, ending just 0.01 percent higher.

"There aren't really any drivers, the second quarter may be better, we may see some good results from companies like Air Arabia, Emaar Properties and First Gulf Bank," said Julian Bruce, EFG-Hermes director of institutional equity sales.

"Overall many are still cautious on the banks, Dubai World still hasn't been booked as non-performing loans so there is a bit of overhang there," he added.

Oman's bourse fell 0.6 percent, led by banks, tracking weak global sentiment and amid thin volumes.

"We believe the lack of commitment from the investment community will continue till the corporates start reporting the Q2 '10 results," said Osama Ibrahim Al-Qinna, head of brokerage at Oman Arab Bank.

Oman International Bank, which fell 2.2 percent, accounted for around a third of trading in Muscat bourse.

"The downtrend continues with falling prices and lower volumes," he added.

Bourses in Qatar and Kuwait each fell 0.2 percent. (Reuters)

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