1445 GMT - Egypt's benchmark index slips back 0.6
percent after having surged to a six-month high on Monday, but
an increase in volume indicates that Egypt may be stabilising
after a year of political and economic turmoil, traders say.
"We are seeing a period of stability now and it is drawing
investors back to the market," said Mahmoud Othman, trader at
Cairo Capital Securities.
Calls by activists for a civil disobedience last week have
failed to gain momentum, and calm has returned after violent
protests that broke out early this month.
The index soared on Monday after France Telecom
announced it would buy most of the shares in Egyptian mobile
company Mobinil. [ID: nL5E8DD67D]
The French company said it would pay 202 Egyptian pounds
($33.46) for shares owned by Egypt's Orascom Telecom Media and
Technology Holding (OTMT) and other investors in a
deal that could be worth almost $2 billion.
"The index sign is in the negative, but the volume was high
and it shows that investors are interested in trading in the
market," says Tarek Abaza, trading manager at Naeem Brokerage.
OTMT is among the biggest gainers, ending 10 percent higher.
CEO Khaled Bichara said on Monday OTMT would give shareholders
much of the $1 billion it stands to gain by selling its stake in
Mobinil, but would keep part of it for new business
opportunities.
Orascom Construction dips 3 percent, landline
monopoly Telecom Egypt 2.3 percent and Commercial
International Bank 1.2 percent.
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1305 GMT - Banks weigh on Saudi Arabia's benchmark,
which ends lower after reaching a 21-month high in early trade.
The index ends 0.2 percent lower at 6,816 points.
Banque Saudi Fransi declines 1.4 percent,
heavyweight Al Rajhi Bank dips 0.3 percent and Alinma
Bank sheds 1.4 percent.
"Banks have been trading on headlines in the U.S. and Europe
and there have been repeated calls that interest rates will
remain low, which tend to pressure earnings," says Asim
Bukhtiar, head of research at Riyad Capital. "Investors are
gauging headlines versus fundamentals. I would be surprised to
see the loan growth from 2011 continue."
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1047 GMT - Dubai's Emaar Properties climbs to a
fresh six-month high ahead of posting estimate-beating earnings,
while small-caps surge to lift the index.
Shares in Emaar rise 1.4 percent to 2.98 dirhams, their
highest since Aug. 4. It posted a net profit of 716 million
dirhams for the fourth-quarter. Analysts polled by Reuters
expected it to post an average of 475 million dirhams.
Dubai's benchmark gains 1.2 percent to close at 1,539
points, also a six-month high.
Analysts say the market is due for profit-taking after the
sharp rise in recent sessions, but Emaar's estimate-beating
results could support them at these levels for a while longer.
"What's keeping the market up is the surprise (upside to)
results. You would tend to see short-term traders pick up
positions in anticipation of quick gains," says Amer Khan, fund
manager at Shuaa Asset Management.
Small-caps Union Properties, Gulf Navigation
and Deyaar Development are up 7.3, 6.7 and
7.3 percent respectively.
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1020 GMT - Abu Dhabi's Aldar Properties surges to
a three-month closing high after it proposed a surprise dividend
and posted a profit for 2011.
Aldar shares rise 5.1 percent to their highest finish since
Nov. 16.
"There is a question on whether they should or can give out
dividends, but any dividend helps the market," says Amer Khan,
fund manager, Shuaa Asset Management.
The developer, bailed out twice by Abu Dhabi with rescue
packages of about $10 billion, swung back into profit in 2011 on
the back of land sales to the government and increased
residential sales. It made a net profit of 642.5 million dirhams
($170 million) and proposed a dividend of 0.05 dirhams per
share.
Competitor Sorouh Real Estate also rises, up 7.5
percent.
Abu Dhabi's index rises 1 percent to 2,490 points,
extending year-to-date gains to 3.6 percent.
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1006 GMT - Kuwait's benchmark ends at a five-month
high, with volumes the largest in two years, although most of
this activity is from short-term traders speculating in
small-cap stocks.
The index climbs 1.1 percent to 6,010 points, its highest
close since Sept. 15.
Gulf Finance House gains 7.9 percent, Al Ahlia
Holding rises 8.3 percent and Investors Holding Group
surges 17.4 percent.
"Historically, trading and speculation on small-cap
companies start in the first quarter," says Talal Al-Hunaif,
senior investment analyst at Coast Investment and Development
Company. "Companies start afresh in the beginning of the year to
boost their stock portfolios."
Telecoms operator Zain falls 2.3 percent, despite
posting a net profit of $1.03 billion in 2011, up from $1.02
billion in the previous year.
"Zain's subscriptions have risen and the results were not
bad, but we see better value in other MENA telecom companies,"
says Amer Khan, fund manager, Shuaa Asset Management. "Going
forward, in the absence of merger and acquisition deals, people
will start focusing on fundamentals."
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0920 GMT - Saudi Arabia's index, hovering near
21-month highs, is flat but cement stocks gain on upbeat demand
outlook.
Saudi Cement, which restarted shut-down facilities
to meet surging demand, gains 1.2 percent. Meanwhile, Yanbu
Cement climbs 0.7 percent and Qassim Cement
rises 4 percent after its board recommended a dividend
distribution of 315 million riyals ($83.99 million) for the
second half of 2011.
The index eases 0.02 percent to 6,829 points, slipping from
Monday's 21-month closing high.
"If we can sustain above the 6,800 level, the index could
head towards the 7,000 psychological level," says Farouk Miah,
Acting Head of Research at NCB Capital.
Volumes are concentrated in small caps like insurance stocks
as investors look for quick gains.
Al Rajhi Takaful gains 3.4 percent and Al Ahlia
Insurance climbs 3.5 percent.
Petrochemical stocks are lower with Saudi Basic Industries
Corp (SABIC) and Saudi Kayan Petrochemical
declining 0.3 percent each.
In Oman, the index ends 0.3 percent higher at 5,607
points. Bank Muscat gains 0.4 percent and Oman
Telecommunications rises 2 percent.
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0630 GMT - Dubai's benchmark extends gains as investor
confidence returns in the local equity markets, supported by
positive regional corporate earnings results.
The index rises 1.6 percent to 1,546 points, its
highest level since July 2010.
Bellwether Emaar Properties gains 2 percent,
hitting its highest level in six months as investors anticipate
strong fourth-quarter earnings.
Drake and Scull jumps 5.3 percent, Union Properties
surges 8.1 percent and Gulf Navigation rises
5.9 percent.
"Retail clients have changed their stance since the
beginning of the year and have raised their targets," says an
Abu Dhabi-based trader who asked not to be identified.
"Whether its big or small investors, they've seen things
improve and are less inclined to sell. Those that have missed
the boat are trying to catch up. There's generally more
confidence in the market," he adds.
Sentiment was lifted after Abu Dhabi's Aldar Properties
swung to profit and proposed a surprise cash dividend
on Monday.
Abu Dhabi's Sorouh Real Estate also rises, up 4.3
percent. The Abu Dhabi index gains 0.6 percent.
Abu Dhabi Islamic Bank jumps 5.5 percent. On
Monday, it reported 2011 fourth quarter net profit growth of 35
percent, helped by higher fee and commission income and
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