1315 GMT - Saudi Arabia's index ends at a 10-week
high, reversing declines in the last two sessions, as banking
and insurance stocks support.
The benchmark climbs 0.3 percent to 6,961 points, ending at
its highest close since May 30.
Banks advance, as Al Rajhi Bank gains 0.3 percent
and Samba Financial Group adds 0.9 percent. Alinma
Bank climbs 0.8 percent.
Insurance stocks also rally, with the sector's index
up 0.7 percent. These small- and mid-caps are usually
targeting by retail traders for short-term gains.
Saudi Integrated Telecom Co jumps 9.7 percent to
its highest level since it resumed trading on June 20.
The stock was suspended for nearly three months while the
company addressed issues raised in an auditor's report on its
2011 financial results.
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1055 GMT - Kuwait's bourse slumps to a seven-month closing
low after members of parliament again boycotted a session of the
country's assembly on Tuesday, foiling an attempt to swear in a
new cabinet, while UAE bourses end mixed in muted trade.
Political upheaval in the leading OPEC exporter is keeping
away institutional investors, leaving the market at the mercy of
day-traders.
The head of parliament said he would take the matter to the
emir, which is expected to lead to fresh general elections,
probably after Ramadan.
The index falls 0.4 percent to 5,709 points, its
lowest close since Jan. 9.
"The business impact of the political situation is keeping
investors afar - we need to change the bias of the institutional
trader because there is hardly any interest," says Fouad
Darwish, head of brokerage at Global Investment House.
Investors are also nervous due to many financial companies
delaying reporting quarterly earnings, with increased
impairments from those that have further dampening sentiment.
Burgan Bank ends flat after saying Q2 net profit
grew 1.5 percent year-on-year, but provisions surged 16 percent.
"Banks are going to start increasing provision allocation,
which will regressively effect market sentiment. What's
happening to the market is very correlated with financial
securities, which makes up the bulk of the market cap," Darwish
adds.
Much of the bank's loans have collateral either in real
estate or stocks and with stock prices being hit, banks have to
increase provisioning against possible defaults.
Telecom operator Zain sheds 1.5 percent, falling
to its lowest closing level since March 2009. The telecom
operator reported a 1 percent rise in quarterly profit on Monday
but missed analysts' estimates.
In the UAE, shares in Air Arabia gain 0.8 percent
to a 16-week high after posting estimate-beating earnings.
The budget carrier said its second-quarter net profit rose
30.7 percent to 66.2 million dirhams ($18 million).
"We find these numbers very encouraging and expect the
airline's stock price to continue its recent run," says Sleiman
Aboulhosn, assistant fund manager at Al Masah Capital.
"Pressure from high oil prices is somewhat abating, which
will help Air Arabia record better margins, or at least maintain
its current margins in case competition intensifies. The stock
still provides a very attractive dividend yield, which adds a
lot to its attractiveness given that risk aversion among
investors continues to a certain extent."
Brent Crude is trading near $110 a barrel, down from
second-quarter's high of $125 a barrel.
Dubai's measure slips 0.2 percent to close at 1,557
points, extending declines from Sunday's 13-week peak.
Emaar Properties sheds 1.2 percent, trimming
year-to-date gains to 31.5 percent.
Abu Dhabi's bourse ticks up 0.2 percent to close at
2,511 points.
Elsewhere, Doha's index extends gains, up 0.2 percent
to 8,365 points, rising to a fresh two-month high. Technical
indicators are bullish and analysts are targeting 8,533 as the
next possible level.
Qatar Insurance advances 2.7 percent after it said
Qatar Holding, a unit of the Gulf state's sovereign wealth fund,
was in talks to increase its stake in the firm through the
purchase of new shares.
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0940 GMT - Saudi Arabia's bourse resumes gains with
petrochemical and insurance stocks leading, while the index
hovers at the fringes of 7,000, a key psychological
level.
Buying returns on petrochemical stocks on back of an upbeat
global backdrop and Brent crude gains 74 cent to $110 a
barrel by 0833 GMT, nearing a 12-week high.
The petrochemical index rises 0.5 percent.
Market-leader Saudi Basic Industries Corp (SABIC)
advances 0.8 percent.
Saudi petrochemical stocks tend to track oil prices, with
crude impacting their bottom line. Oil is also seen as a proxy
for global economic activity and therefore demand for
petrochemical products.
World shares rallied and oil prices are higher on hopes that
Europe would take further action to tackle its intractable debt
crisis.
The kingdom's benchmark gains 0.3 percent to 6,967 points,
its highest level since June 2. The 7,000 levels is a strong
resistance and closing above it would be a bullish signal for
the market.
Insurance stocks rally with the sector's index up
1.9 percent. These small- and mid-caps are usually targeting by
retail traders for short-term gains.
Elsewhere, Kuwait's bourse falls 0.4 percent to
5,707 points, nearing a six-and-a-half-month low hit on July 31.
Trading volumes are muted but investor sentiment is further
dampened amid fresh political upheaval.
Kuwaiti members of parliament again boycotted a session of
the assembly on Tuesday, foiling an attempt to swear in a new
cabinet. The head of parliament responded by saying he would
take the matter to the emir, which is expected to lead to fresh
general elections, probably after Ramadan.
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0743 GMT - Shares in Air Arabia rise to a 16-week
high after its quarterly earnings beat estimates but Dubai's
bourse edges lower as investors book recent gains.
Air Arabia gains 1.2 percent to 0.65 dirhams per share,
having risen as high as 0.67 dirhams. The budget carrier said
its second-quarter net profit rose 30.7 percent to 66.2 million
dirhams ($18 million).
"Air Arabia reached a resistance level at 0.665 -- any close
above it and it should continue to 0.711," says Amjad Bakir,
equity portfolio manager and head of trading at MENA CORP. "The
relative strength index level on the daily chart is too high at
92. We may see some profit-taking at current levels."
Emaar Properties trims year-to-date gains to 32.7
percent, slipping 0.3 percent.
Dubai's measure sheds 0.2 percent to 1,556 points,
extending declines from Sunday's 13-week peak. Trading is muted
however, which is typical of summer and Ramadan, when many
participants are away from the market.
Abu Dhabi's index gains 0.2 percent to 2,510 points,
with heavyweight lenders supporting the move.
First Gulf Bank climbs 1.1 percent to its highest
intra-day point since April 18, while National Bank of Abu Dhabi
gains 0.5 percent.
In Qatar, the index edges up to a near nine-week high. It
adds 0.1 percent to 8,354 points.
Qatar Insurance advances 2.7 percent after it said
Qatar Holding, a unit of the Gulf state's sovereign wealth fund,
was in talks to increase its stake in the firm through the
purchase of new shares.
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0550 GMT - Global shares are higher on hopes that Europe
will take further action to tackle its debt crisis on increasing
pressure from bond markets but Gulf investor confidence is tepid
as uncertainties persist.
Dubai's benchmark slipped 1 percent on Monday,
easing away from a 13-week peak, and Saudi Arabia's measure
eased for a second session from Saturday's two-month
high.
UAE budget carrier Air Arabia may see some gains
after it said quarterly net profit rose 30.7 percent to 66.2
million dirhams ($18 million), beating analysts' forecasts.
"Some good earnings may lift the market but the trend I see
is one of flat to slightly lower," says a Dubai-based trader who
asked not to be identified. "The only thing investors around the
world are looking for is stability in Europe. I'm not saying
sentiment is negative but the holiday season and expectations
for more (U.S.) Fed action is keeping stocks from sliding."
Global sentiment improved as yields in Spain and Italy
inched lower on Monday on expectations the European Central Bank
will follow through with last week's statement which hinted at
upcoming policy steps to contain Madrid's borrowing costs.
An increase last week in the U.S. jobless rate to 8.3
percent kept prospects of further monetary stimulus from the
Federal Reserve on the table.
In Oman, Bank Muscat, Oman's largest lender by
market value, saw its 96.7 million rials ($251.2 million) rights
issue 127.5 percent covered by investors, the lender said.
(Reporting by Nadia Saleem; Editing by David French)