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Tue 31 Jul 2012 10:11 AM

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Sorouh in focus; global markets may spur caution

Gulf investors will look to second-quarter earnings for cues, with stock-picking trading likely amid a summer lull

Sorouh in focus; global markets may spur caution

Gulf investors will look to second-quarter earnings for cues, with stock-picking trading likely amid a summer lull, while a cautious global backdrop may spur some to book recent gains.

In UAE, Sorouh Real Estate may see some gains after posting estimate-beating quarterly profit of AED148.2m(US$40.35m).

Dubai real estate developer Emaar Properties rallied to its highest level since April 2011 on Monday, lifted by forecast-beating second-quarter earnings. Its shares rose 4 percent to close at AED3.37.

NBK Capital cut its recommendation to accumulate from 'buy'.

Dubai's index rose 1.9 percent in the previous session, closing at a near two-week high. Saudi Arabia's measure climbed 0.8 percent, it highest close since July 8.

"I expect market to surrender some recent gains Dubai and Saudi Arabia especially," says a Dubai-based trader who asked not to be identified.

In Doha, Qatar Telecom (Qtel) may be under selling pressure after saying second-quarter net profit fell 11.3 percent, missing one analyst's forecast.

Masraf al Rayan, Qatar's fourth-largest bank by market value, has launched a subsidiary brokerage firm to buy and sell sharia-compliant financial instruments for all types of investors.

Elsewhere, Asian shares rose on Tuesday on hopes for further stimulus from the European Central Bank and the US Federal Reserve, both of which hold policy meetings this week, but scepticism about the long-term effectiveness of any ECB actions capped the euro.

"We need to see some action on stimulus in US and Europe to be convinced," the Dubai-based trader says.

Brent crude slipped towards US$106 per barrel on Tuesday as caution among investors grew that any fresh stimulus measures coming from central bank meetings in the US and Europe might not be enough to revive their stuttering economies.