GCC Market Weekly Update January 22, 2010
GCC markets ended the week on a mixed note. The UAE market witnessed selling pressure owing to renewed concerns over the debt level of Dubai World. The Saudi market edged higher due to strong corporate earnings results, while markets in Qatar and Oman closed lower. The Kuwaiti government’s investment plans were viewed positively—the KSE gained 1.08% this week.
UAE: The UAE market continued to witness selling pressure due to concerns related to the debt level of Dubai World; despite Nakheel making coupon payments, investors remained risk averse, thereby leading to a fall of 3.2% and 2.6%, respectively, on DFM and ADSM. Action was once again centered on the banking and real estate sectors, which declined 4% and 5%, respectively. Major losers during the week were Emaar (-6.5%), Sorouh (-8.4%) and Shua Capital (-7.3%).
Saudi Arabia: The Saudi market gained 1.9% this week led by corporate earnings results of banking and petrochemicals companies; the respective sector indices rose 5% and 4%. Kingdom Holdings, which reported a turnaround to profitability, Riyad Bank and Saudi Hollandi were among the top gainers, increasing by 18%, 12% and 8%, respectively. Despite posting a 59% fall in full year profitability, petrochemical major, SABIC gained 2% this week, reflecting better-than-expected Q4 numbers. Saudi Steel Pipes (-6%), Bank Al Bilad (-5.5%) and Sahara Petrochemicals (-5%) were among the major losers.
Kuwait: The Kuwaiti market gained 1.08% this week and closed above the 7000 level. Real estate and industrial indices gained 2% and 3.5%, respectively, while banking and insurance indices ended flat. The government’s proposed investment plan worth $120 Bn was viewed positively by investors and stocks such as United Industries (+26%) and Abyaar Real Estate (+21%) surged during the week. Among heavyweights, Zain (-1%), Kuwait Finance House (-1.8%) and CBK (-1%) were the highest losers.
Oman: The Omani market continued to witness selling pressure during the week, ending 2.17% down to 6405 points. Unlike the previous week’s good corporate numbers, Omani companies reported a mixed set of earnings results this week. Al Jazeera Steel Products incurred a net loss for the year and the stock dipped 11%. NBOB reported a weak set of numbers, which led to a decline of 2.4% in the stock. Among heavyweights, Oman Telecommunications Co (Omantel)’s stock fell 4.7% on rumors of a stake sale, while Bank Dhofar extended its previous week’s gain by another 6.2% this week on back of strong results.
Qatar: Doha Securities Market continued with its losing trend and reported a decline of 1.2% to close at 6772 points. Among heavyweights, Doha Bank and Qatar Telecom were the highest gainers, rising 6.5% and 4.2%, respectively. Real estate witnessed selling pressure this week; Qatar Real Estate and Barwa Real Estate closed at 6.8% and 5.7%, respectively.
Bahrain: The Bahrain Stock Exchange closed marginally higher (+0.4%) and closed the week at 1477 points. Gulf Finance House and Al Ahli United Bank were the star performers, gaining 9.8% and 8.3%, respectively. AlBarka (-11%), Esteraad (-7%) and Ithmaar Bank (-4.5%) were among the major losers.
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