1048 GMT - Dubai's small caps surge on high volumes, helping
the emirate's index hit a six-month closing high as
retail investor risk appetite grows.
Property stocks rise, with Deyaar up 14.7 percent
and Union Properties up 15 percent.
Gulf Navigation surges 14.9 percent, and National
Central Cooling (Tabreed) climbs 10.1 percent.
"Risk appetite has improved over the course of the last four
to five weeks... broadly speaking fourth-quarter results have
been better than expected and the macro environment, global and
local has also improved," says an Abu Dhabi-based trader who
asked not to be identified.
The benchmark rises 2.2 percent to 1,522 points, its highest
close since Aug. 4.
The Greek parliament approved austerity measures to secure a
much-needed bailout on Monday, boosting world stocks.
Local sentiment was also soothed after Abu Dhabi said in
January it had approved a raft of projects including the delayed
construction of branches of the Louvre and Guggenheim museums.
This was seen as a signal the emirate would support its
state-linked enterprises.
Abu Dhabi's benchmark climbs 0.4 percent to 2,466
points, extending its February gains to 0.5 percent.
Banks support, with First Gulf Bank up 1.1 percent
and National Bank of Abu Dhabi rising 0.5 percent.
Elsewhere, Qatar's index ends little changed, rising
0.09 percent to 8,695 points.
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0959 GMT - Kuwait's benchmark closes on a 21-week
high as upbeat earnings boost sentiment, while the resignation
of the central bank governor also helps.
The index advances 0.7 percent to 5,946 points, its highest
close since Sept. 21.
Gulf Bank gains 1 percent. It reported a 60
percent jump in full-year net profit in 2011, despite a
significant decline in fourth-quarter earnings compared to the
same period in 2010.
"The market is up because of the positive announcement from
the companies regarding the fiscal year 2011, especially banks,"
says Talal al-Hunaif, senior investment analyst at Coast
Investment and Development Company.
But volumes are pronounced in medium and small caps, where
individual and small investors are focusing.
Kuwait's central bank governor, Sheikh Salem Abdul-Aziz
al-Sabah, resigned on Monday, saying increased public spending
inhibits the bank's ability to do its job, state news agency
KUNA said.
Elsewhere, Oman's benchmark closed 0.2 percent lower at
5,589 points, with Bank Muscat the main drag.
The heavyweight lender falls 1.5 percent, its lowest close
since December. Foreign investors are selling the stock on fears
of share price dilution, traders say.
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0858 GMT - Saudi Arabia's index advances in early
trade as gains in European shares and high oil prices boost
investor sentiment.
The Greek parliament's approval of austerity measures to
secure a much-needed bailout lifted European shares on Monday,
while crude prices rose by more than $1.
Kingdom Holding climbs 5 percent and Jabal Omar
adds 1 percent.
Saudi Telecom is up 1.1 percent.
The index gains 0.3 percent to 6,826 points.
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0715 GMT - Dubai's Drake and Scull International
rises after its fourth-quarter profit beat estimates.
DSI rises 0.7 percent. The contractor's quarterly profit was
65 million dirhams for the final three months of 2011 compared
to 34.9 million dirhams in the same period in 2010, Reuters
calculated based on previous earnings reports.
It beat estimates by two analysts, who expected an average
profit of 54.7 million dirhams.
Emaar Properties and contractor Arabtec
gain 0.7 percent. Dubai's benchmark ticks up 0.2 percent to
1,492 points, nearing Feb. 6's six-month high.
"The market is waiting for a catalyst to sustain its recent
strong move ... the main catalyst will be Emaar's results," says
Marwan Shurrab, vice-president and chief trader at Gulfmena
Investments.
Abu Dhabi's index eases 0.1 percent to 2,453 points, down
for a fifth session in six.
Elsewhere, Qatar's benchmark dips 0.2 percent to
8,670 points, while Kuwait's measure rises 0.3 percent
to 5,924 points.
---------------------------------
0706 GMT - Dubai's Shuaa Capital surges to a near
three-month high after it reports a smaller net loss for the
fourth quarter.
The firm's shares jump 14.8 percent to their highest level
since Nov. 20.
Shuaa said it had a net loss of 111.8 million UAE dirhams
($30.44 million) in the quarter ended Dec. 31, compared to a
loss of 186.7 million in the prior-year period.
There is also market talk of a potential buyer. The stock is
up in a third day of sharp gains.
"The movement is more on speculation of restructuring or
even a potential interest from a third party to acquire a stake
due to the depressed valuations right now," says Marwan Shurrab,
vice-president and chief trader at Gulfmena Investments.
Dubai's index climbs 0.2 percent to 1,492 points.
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0540 GMT - Gulf markets are likely to see a boost in
sentiment, tracking modest gains in Asian markets, after
Greece's parliament approved the deeply unpopular austerity
bill, making a messy default less likely.
But local markets are unlikely to rally significantly on the
news the bill had passed as investors had priced such a move.
"To a large extent, this was expected. If we didn't get the
vote through, you would've seen panic," says Abdul Kadir
Hussain, chief executive and fund manager at Mashreq Capital.
"The markets shouldn't react negatively, they've already gone up
a lot and priced in some relatively benign news in Europe."
Asian shares and the euro gained modestly on Monday,
relieved after Greece came a step closer to securing a
much-needed bailout fund and avoiding a messy default.
Brent crude rose above $118 on Monday, supported by a weaker
dollar and expectations of a revival in demand growth.
Dubai-based investment bank Shuaa Capital is
likely to see selling pressure after reporting a wider 2011
loss, of 293.8 million dirhams ($80 million), as it booked
provisions and one-off charges.
Shares in Shuaa rose 14.9 percent on Sunday, closing at
their highest since Nov. 22.
Kuwait's Gulf Bank will be in focus after
reporting a 60-percent jump in full-year net profit in 2011,
despite a significant decline in fourth-quarter earnings
compared to the same period in 2010.
Meanwhile, Bahrain-based alternative investment manager
Investcorp said on Monday it made a net profit of $5.3
million in the first half of fiscal year ending Dec 31, 2011,
taking a hit from declining global hedge funds revenues.
In other company news, Dubai lender Emirates NBD's
general manager of global markets and treasury John Eldredge is
leaving the bank, two sources told Reuters on Sunday.
(Reporting by Nadia Saleem; Editing by Matt Smith)
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