GCC Market Weekly Update January 29, 2010
All GCC markets, except Oman, ended the week on a negative note. UAE market continued to witness selling pressure, while Saudi market pulled back from last week’s corporate earnings-led rally. Oman appeared to be bucking the GCC trend on the back of robust earnings results through the week; MSM index closed 1.67% higher. Kuwait and Bahrain markets ended marginally lower.
UAE: The UAE market extended last week’s losses; DFM and ADSM indices dropped 3.2% and 0.3%, respectively. Concerns over the outlook of the construction sector and weak money supply data continued to plague investor appetite for real estate stocks that declined 6% and 8% on DFM and ADSM, respectively. Major losers for the week were Aldar (-8.5%), Sorouh (-2.9%) and Arkaan Building Materials (-8.7%).
Saudi Arabia: Investors exercised caution and profit booking took the Saudi market down 2.03% at 6253 levels. Petrochemicals counters continued to trade amid selling pressure and the sectoral index dropped 3.43% this week. Majors SABIC and Kayan lost all of previous week’s gains to close 3% lower. Other notable losers this week were Saudi Cables (-9%), SIIG (-6%) and Samba (-5%). Amongst the notable gainers were Kingdom (+7.8%) and Yamama Cement (+3.7%).
Kuwait: The Kuwaiti market closed marginally lower (-0.35%) this week at 7035 levels. The index, however, ended on a positive note in the last trading session. Investments and Real estate indices shed 2% and 1.5%, respectively, while Services index closed 1% higher. Among heavyweights, Telecom giant Zain dropped 8.8% this week. NBK (-3.6%) and CBK (-2.1%), too, were among the major losers. Top gainers for the week were United Industries (+28%), NCCI (+19%), Aref Energy (+16%) and Qurain Petrochemicals (+9%).
Oman: The Omani market bucked the GCC trend. Supported by corporate earnings results, the MSM market gained 1.67% this week to close above the 6500 levels. BKMB reported weak numbers; however, bonus issue and dividend kept the investor interest intact, thereby helping the stock gain 7.8%. Among heavyweights, Omantel extended last week’s losses, while bullish sentiment continued to persist at the Bank Dhofar counter that rose another 7% this week.
Qatar: Doha Securities Market extended the losses and closed at 6592, down 2.7%. Despite positive news flows pertaining to investment plans, investors sold off on concerns over ailing corporate earnings. Among heavyweights, Industries Qatar (down 6%) and Ezden Real Estate (down 5%) were the biggest losers. United Development and Masraf Al Rayan were amongst the most traded counters and stocks were down 19% and 6%, respectively.
Bahrain: The Bahrain Stock Exchange closed marginally lower (-0.35%) at 1472. Amongst heavy weights, AlBaraka gained 5%. Banking counters exhibited mixed trends with AL Ahli United gaining 1%, while NBB shedding 2.5% this week.
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