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 lower
provisions.
Elsewhere, Kuwaiti telecom operator Zain slips 1.1
percent. It posted a net profit of $1.03 billon in 2011, up from
$1.02 billion in the previous year, the state news agency KUNA
said on Monday.
The benchmark however, sustains the rally, rising
0.5 percent to 5,974 points, its highest level since September
2010.
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0607 GMT - Abu Dhabi's Aldar Properties surges to
a three-month high after it proposed a surprise dividend and
posted profit for 2011
Aldar shares jumped 6.1 percent to their highest level since
Nov. 16.
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
and proposed a dividend of 0.05 dirhams per share.
Abu Dhabi's index rises 0.5 percent to 2,479 points,
extending year-to-date gains to 3.2 percent.
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0545 GMT - Abu Dhabi's Aldar Properties is seen
rising on Tuesday after the developer proposed a surprise
dividend, while Gulf Arab markets are set to extend gains as
retail investors pump money back into equities.
Aldar, which was 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 and has proposed a dividend of 0.05 dirhams
per share.
"Volumes have picked up strongly and Aldar's dividend was a
surprise after all the negative news that was coming out about
the company, so it could see a very good performance today,"
says Musa Haddad, head of MENA equity desk at National Bank of
Abu Dhabi.
This should also spill over into Dubai bellwether Emaar
Properties, Haddad says, which is slated to report
annual earnings this week.
"We are very close to ending the bearish markets, whether it
is the UAE, Saudi Arabia or Egypt," says Haddad.
The Dubai and Egypt index benchmarks hit
six-month highs on Monday, while Saudi Arabia's index
ended at 6,832 points, its highest finish since May 2010.
"Saudi has been trading in range between 5,200 and 7,000
points for about three years and volumes are picking up as it
approaches 7,000 again, which indicates it can break above this
level," says Haddad. "From there, it could make a huge upside
move."
Dubai ended Monday at 1,522 points and is also nearing a key
technical resistance level.
"Dubai is approaching 1,560 points and if it breaks above
this it will signal a reversal of the down trend in Dubai," adds
Haddad. "We expect the rally will continue and any downside will
be an opportunity to buy."
Elsewhere, shares and the euro fell on Tuesday after Moody's
warned it could downgrade top-rated sovereigns including
Britain, reminding investors that Europe is still deeply mired
in a debt crisis despite Athens' steps to avoid a disorderly
default.
($1 = 3.7503 Saudi riyals)
(Reporting by Nadia Saleem and Matt Smith; Editing by Amran
Abocar)
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