Dubai ends losing streak; ME sees lackluster trading

Author: 
DINESH NAIR | REUTERS
Publication Date: 
Thu, 2010-02-25 23:30

World stocks, the euro, and commodities, fell on concerns over a potential downgrade of Greece’s debt, while borrowing costs for peripheral euro zone countries rose.
“Cash is on the sidelines. Valuations are cheap and markets are oversold but until there is more clarity on the debt situation, international investors will not come in,” said Matthew Wakeman, managing director for cash and equity-linked trading at EFG-Hermes in Dubai.  
Dubai’s index gained 0.8 percent to 1,582 points as investors bought banking and real estate stocks, but analysts say the rebound was more technical in nature and fundamental worries remain.  
“Today’s rebound was more technical. Dubai has been falling more than Abu Dhabi and the index reached its support level,” said Vyas Jayabhanu, head of investments at Al Dhafra Financial Broker.  
Arabtec led property stocks in Dubai, rising 2.9 percent and Emaar Properties rose 1 percent. Emirates NBD, the UAE’s fourth largest bank by market value, rose 2.9 percent.   However, Abu Dhabi’s index closed 0.7 percent lower at 2,702 points weighed down mainly by Abu Dhabi Commercial Bank  which fell 3.5 percent. National Bank of Abu Dhabi, Abu Dhabi’s largest bank by market value, fell 1.8 percent.  
A recovery in banking stocks and expectations of positive results from Industries Qatar helped push Qatar’s index 0.6 percent higher but volumes remained low. 
Qatar Islamic Bank rose 1 percent while Al Khaliji Bank rose 1.8 percent.   “The outlook for Qatar is one of the best in the region and fundamentals remain very strong,” Wakeman said.  
Egypt’s main index gained for a second straight session, ending 1.7 percent higher after falling for five consecutive trading days.  
“Last week, there was profit-taking across the board in small caps and blue chips,” said Hashem Ghoneim of Pyramids Capital. “We went down to the level of 6,550, the area that was a support, then rebounded back.”  
Oman’s index dropped 0.6 percent on profit booking in bluechips. Galfar Engineering was among the top losers in the index falling 3.5 percent.  
“We saw profit booking in some of the stocks today but corporate sector sentiment is seen strengthening with demand recovery in local market,” said Ajeev Gopinath, assistant vice president for asset management at Gulf Baader Capital Markets.   Saudi Arabia was shut for the weekend and Kuwait markets were closed for a holiday.

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