18/08/2010
Saudi Telecom up after buy rating
Mideast Stock News
Saudi Telecom Co is the main support as Saudi Arabia's index <.TASI> holds steady, while Saudi Basic Industries Corp (SABIC) gives back some its gains of the previous day. Saudi Arabia's index slips 0.02 percent to 6,160 points.
Saudi Telecom climbs 0.5 percent to 37.40 riyals. On Tuesday, Riyad Capital started coverage of Saudi Telecom with buy rating and a target price of 52 riyals, citing potential growth in the company's international operations.
SABIC slips 0.6 percent. It gained 1.7 percent on Tuesday as oil prices ended a five-session losing streak, but with crude again on the slide, sentiment for SABIC and other petrochemical stocks has also weakened.
Crude is down 0.7 percent at $75.24 a barrel at 0836 GMT after an industry report signaled petroleum inventories in top consumer the United States were headed for a record.
Hesham Tuffaha, Bakheet Investment Group head of research, warns Saudi share prices are becoming disconnected from company fundamentals.
National Bank of Kuwait <NBKK.KW> falls, retreating from Tuesday's 21-month high, but the country's index is steady in early trade.
NBK drops 1.5 percent to 1.3 dinars. Investors had bought into the stock to be able to take part in the lender's capital increase. This rights issue priced at 0.5 dinars, a marked discount on the market price.
Qatar National Bank <QNBK.QA> slips 0.4 percent to 137.50 riyals, but has strong support at 135 riyals, says Girgis.
Dubai's index rises 0.1 percent to 1,489 points while Abu Dhabi's index <.ADI> edges up 0.07 percent to 2,496 points.
Egypt's index rose 1.5 percent on Tuesday to end a four-session losing streak, but low turnover is likely to blunt investor hopes of further gains. (Reuters)
