16/08/2010
Lack of catalysts spur flat trade
MIDEAST STOCKS NEWS
Middle East markets are likely to remain flat on Monday, with little news for investors to trade on.
Leads from Asia are negative. The Japanese Nikkei is down 0.7 percent after data showed the country's economic growth stalled in the second-quarter, adding to worries a global recovery is faltering.
In the longer-term, Saudi Arabia <.TASI> and Qatar <.QSI> are seen outperforming their regional peers, while doubts over Dubai's debts will weigh heavy on bourses in the United Arab Emirates, says Shakeel Sarwar, Sico investment bank head of asset management.
Qatar Telecom <QTEL.QA> reported a 45 percent drop in second-quarter profit after the year-ago quarter was boosted by a one-time gain, while Barwa Real Estate, Doha's second largest listed developer, posted a 44 percent rise in quarterly profit.
Dubai's Emaar Properties has sold an office building in the emirate for 331.6 million dirhams ($90.25 million), The National reported on Monday. Dubai's index fell to a six-week low on Sunday following below-forecast earnings from a slew of property-related companies.
This month's listings from Al Jouf Cement Co and Knowledge Economic City have swelled Saudi Arabia volumes, but remove these and the market looks lackluster, says Saleh al-Onazi, vice-president of principal investment at Swicorp in Riyadh.Adding :"The market has been trading in a rough range between 6,000 and 6,300 points and I expect it to stay there until at least the Q3 results season or something major happens on international markets" (Reuters).
