29/07/2009
1231 GMT - Saudi Basic Industries Corp <2010.SE> (SABIC) retreats from Monday's six week high as a slight pull back in oil prices dampens sentiment and convinces traders to book profits.
The petrochemicals producer has been closely correlated to oil prices for the past two weeks. Crude slipped to an eight-week closing low on July 14, but subsequently gained 14.9 percent in the nine trading sessions to Monday's close, with SABIC climbing 13.1 percent over the same period.
Oil is down 0.9 percent at $67.80 a barrel at 1216 GMT, spurring investors to book gains in SABIC amid a mild pull back in Gulf shares.
SABIC falls 3.5 percent and its woes drag Saudi Arabia's index <.TASI> down 1 percent to 5,779 points.
Al-Rajhi Bank <1120.SE> drops 1.1 percent after the lender booked $112.4 million in provisions for loan losses during the second quarter. [ID:nLS549734]
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1200 GMT - Egypt's benchmark index <.EGX30> ends almost flat as local investors eye movement on the U.S. market, brokers say.
"With the domino effect in the markets, almost everyone is watching all the other markets," says Wafik Dawood from Naeem brokerage, adding that selling appeared late-session after futures trading pointed to a lower start on Wall Street. <.N>
Mobinil <EMOB.CA>, which is due to release Q2 results after the close of trading, ends 0.6 percent lower.
The largest volumes are seen in builder Talaat Moustafa <TMGH.CA> and small and medium-cap firms showing small price movements.
The index ends 0.1 percent higher at 6,140 points.
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1001 GMT - Abu Dhabi's index <.ADI> ends higher for a 10th straight session after its two biggest banks by market capitalisation surge.
National Bank of Abu Dhabi <NBAD.AD> and First Gulf Bank <FGB.AD> climb 4.3 and 4.7 percent respectively. These gains are achieved on low volumes, with less than 600,000 shares changing hands combined, and so little can be drawn from these upward moves, analysts say. The index rises 0.3 percent to 2,763 points.
Dubai's index <.DFMGI> falls for a second day as investors book profits from Sunday's surge, its largest one-day gain for more than five months.
The benchmark slips 0.01 percent to 1,828 points. Deyaar <DEYR.DU> falls 2.6 and Union Properties <UPRO.DU> drops 1.9 percent.
"After such a big rise on Sunday, profit-taking was to be expected, but volumes are low and investors seem to be accumulating in certain stocks and have little interest in selling the market lower," says Amjad Bakir, Mac Sharaf Securities trading manager.
"The market needs a catalyst to move higher -- this could be oil or international stocks or fundamental news from one of its listings."
Dubai's trading volume is barely a third of Monday's total. The index has support between 1,790 and 1,800 points, Bakir, says, but a drop below this could lead to it falling to 1,720 points. Upwards, the next major resistance is at 1,950 points, he adds.
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0931 GMT - Kuwait's index <.KWSE> falls for a second day and Qatar's benchmark also declines as a region-wide equity rally wanes.
National Bank of Kuwait <NBKK.KW> falls 1.6 percent, Gulf Bank <GBKK.KW> slides 3 percent and Ahli United Bank <AUBK.KW> drops 1.4 percent.
"It's all about the correlation with oil prices and international markets -- globally, markets were sideways yesterday and oil has cooled down," says Talal al-Loghani, vice-president for Gulf equity markets at Kuwait Finance and Investment Co.
Kuwait's index <.QSI> slips 0.1 percent to 7,713 points.
Qatar's benchmark <.QSI> also retreats, falling 0.2 percent to 6,678 points, its fourth decline in 13 sessions. It gained 16.5 percent over this period. "It was the continuation of the rally we've seen globally, based on U.S. corporate profits being better than expected -- profits in the Gulf have been mixed, but the entire world took off," says Keith Edwards, head of asset management at Doha-based investment company The First Investor.
Bahrain's index <.BAX> rises 0.3 percent to 1,499 points.
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0901 GMT - Oman's index <.MSI> ends lower for the first session in four, with traders booking profits from Monday's seven-month closing high as global equities pause following a recent surge.
The benchmark falls 0.6 percent to 5,923 points.
"The Muscat index is facing strong resistance around 5,900 points. We will probably see profit-booking today and tomorrow, with the performance of U.S. markets dictating whether Gulf stocks will rally next week," says Sunil Dhall, an independent market analyst.
Oman Telecommunications Co <OTL.OM> (Omantel), Bank Dhofar <BDOF.OM> and Galfar Engineering <GECS.OM> each fall 2.3 percent.
"There was a lot of profit-taking, especially in the industrial and services sectors," says Adel Nasr, United Securities brokerage manager.
Bank Muscat <BMAO.OM> climbs 2 percent after buying from Gulf and foreign investors, Nasr says, helping to limit the index losses.
"If global and regional markets put in a good performance today and oil holds around $68 a barrel, then Oman should rebound tomorrow because most of the local indicators are very positive," he adds.
Oman is up 0.1 percent at $68.46 a barrel at 0914 GMT. Global markets are flat.
