1110 GMT - An initial merger agreement between Abu Dhabi's
top two developers adds fuel to a rally on UAE bourses driven by
bets on strong fourth-quarter earnings and 2013 performance.
Shares in Aldar Properties and Sorouh Real Estate
jump 6.4 and 7.2 percent respectively after sources
familiar with the matter told Reuters that the pair had reached
an initial agreement to create a combined entity with assets
worth more than $15 billion.
The number of shares changing hands in Abu Dhabi surges to
195 million, the highest daily volume since March 2012.
Abu Dhabi's index climbs 0.6 percent to 2,723 points,
its highest finish since July 2011.
"The merger report boosted the retail investor sentiment to
be more aggressive in other stocks as well," says Marwan
Shurrab, vice-president and chief trader at Gulfmena
Investments.
"People are position themselves in anticipation of growth in
2013, strong Q4 results and anticipation of strong dividends."
Dubai's measure hits a 10-month high, rising 2.1
percent to 1,727 points. Volumes also surge to 346 million, the
most shares traded in one session since April last year.
Builder Arabtec jumps 5.3 percent after winning a
$653 million contract for the Abu Dhabi branch of France's
Louvre museum.
Small-caps dominate trade. Gulf Navigation and
Deyaar Development advance 4.2 and 4.3 percent
respectively.
Bellwether Emaar Properties climbs 3 percent. The
developer announced on Tuesday Brookfield Multiplex Construction
will build the sixth hotel in its Address brand.
Elsewhere, Qatar's bourse halted a five session rally. The
index slipped 0.2 percent to end at 8,656 points, easing
away from Monday's eight-month high.
Kuwait's benchmark gains 0.4 percent to 6,043 points,
its highest close since June 11. Oman's index ends 0.2
percent higher at 5,779 points.
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0930 GMT - Shares in Aldar Properties and Sorouh
Real Estate jump after sources familiar with the matter
tell Reuters that Abu Dhabi's two largest real estate developers
have reached an initial agreement to merge.
Aldar jumps 10.7 percent and Sorouh surges 13.7 percent.
The merger would create a state-backed company with combined
assets worth nearly $15 billion, and could help to repair Abu
Dhabi's weak real estate market by ensuring better coordination
of new property developments.
Aldar and Sorouh rallied 39.1 and 46.5 percent respectively
in 2012 as investors bet on the merger. However, whether a
merger is beneficial to investors in both firms will depend on
the share swap ratio, which has not been revealed.
Abu Dhabi's index rises 0.3 percent to 2,715 points.
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0817 GMT - Shares in Banque Saudi Fransi (BSF),
the kingdom's fifth-largest bank by market value, rise after it
posted a 22.2 percent jump in quarterly net profit.
Shares in the lender are up 3.4 percent. It made 808 million
riyals ($215.5 million) in the three months to Dec. 31, the bank
said on Monday.
It beat the estimates of Riyad Capital and NCB Capital,
which forecast a profit of 691 million riyals and 781 million
riyals respectively.
"The ability to grow profits and improve returns in the
future keeps us positive on the stock. However, short-term
concerns on the asset quality of the banking sector in general
have put significant downside pressure on most banks, leading to
the recent underperformance," NCB Capital says in a note.
BSF's share price slipped 5.2 percent in the fourth-quarter,
underperforming the main benchmark, which eased 0.6
percent.
Shares in developer Dar Al Arkan drop 4.4 percent
after the company said its fourth-quarter net profit halved
year-on-year as finance costs rose and property sales generated
lower margins. Net profit for the final three months of 2012 was
144 million riyals ($38.4 million).
The stock rallied 13.8 percent in 2012, driven by strong
retail investor demand, despite weak fundamentals.
The kingdom's index climbs 0.2 percent to 7,025 points.
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0621 GMT - Dubai's Arabtec jumps to a two-month
high after winning a $653 million contract to build the Abu
Dhabi branch of France's Louvre museum.
Arabtec shares climb 4.5 percent to their highest intraday
level since Nov. 5.
The contract awarded by the Abu Dhabi government is due to
be completed in 2015.
Dubai's index climbs 0.3 percent to 1,697 points,
within 10 points of Sunday's nine-month high.
Abu Dhabi's measure edges up 0.08 percent to 2,708
points.
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0555 GMT - Investors in Saudi Arabia will turn their focus
to fourth-quarter earnings as Banque Saudi Fransi (BSF)
kicks off the season, while Dubai's property sector
may see gains with new contract awards.
BSF posted a 22.2 percent jump in its fourth-quarter net
profit citing higher operating income. It made 808 million
riyals ($215.5 million) in the three months to Dec. 31, the bank
said on Monday.
Riyad Capital had forecast the lender to post a quarterly
net income of 691 million riyals.
BSF's 2012 net profit was 3 billion riyals, which missed
estimates of eight out of nine analysts, according to Thomson
Reuters data.
Elsewhere, Dubai's Emaar Properties, the emirate's
largest listed property developer, has awarded the contract to
build the sixth hotel in its Address brand to Brookfield
Multiplex Construction.
Emaar's shares rallied 45.9 percent in 2012, outperforming
the wider Dubai benchmark, which rose 20 percent, as
the property sector recovered and the developer launched new
projects.
Builder Arabtec is likely to resume gains after it
won the construction contract for the Abu Dhabi branch of the
Louvre museum. The contract is worth 2.4 billion dirhams ($653
million), it said.
Arabtec's shares climbed on Sunday to their highest close
since early November, ahead of some profit-taking, amid a
decline on Dubai's bourse.
DFMGI hit a nine-month peak on Sunday.
Asian shares fell on Tuesday as investors took a break from
the new year's rallies, with caution setting in ahead of
corporate earnings season for the last quarter of 2012 and the
European Central Bank's policy meeting later in the week.
(Reporting by Nadia Saleem; Editing by Matt Smith)