“There is anticipation that (the index) will hit the resistance level of 6,900 one more time,” Sally Refaat of Cairo Capital Securities says.
Talaat Moustafa Group, the biggest developer on the index by market value, rises 1.3 percent on better-than-expected results released last week, traders say. The firm’s fourth-quarter net profit rose by 59 percent.
“There is market consensus that its share value will reach 8.5 to 9 (Egyptian) pounds,” Refaat says.
Orascom Construction Industries inches up 0.8 percent and EFG-Hermes gains 0.9 percent.
First Gulf Bank surges to a 14-week high after its board approves a 50 percent cash dividend and forecasts double-digit growth in profit, credit and deposits in 2010, helping Abu Dhabi’s index advance. FGB climbs 5.3 percent to its highest finish since Nov. 25.
“(FGB) is the highest bank in terms of net profit among Abu Dhabi banks, and second after ENBD (Emirates NBD),” says Mohammed Yasin, Shuaa Securities chief executive.
“ADIB (Abu Dhabi Islamic Bank) saw good movements from its low opening. It is believed banks have good liquidity and they will be able to achieve better results than 2009, provided provisioning will be less in 2010.”
ADIB climbs 2.2 percent, while Abu Dhabi Commercial Bank adds 1.2 percent. The index rises 0.8 percent to 2,725 points, its biggest gain since Feb. 17.
Emaar rises 0.7 percent and fellow developer Deyaar adds 2.2 percent, but Union Properties drops 2.1 percent to a fresh seven-year low. The latter is down 23 percent since Jan. 25, when Credit Suisse slashed its price target for the developer to near-zero.
Dubai Financial Market and Arabtec are also among the losers, falling 0.7 percent and 0.9 percent respectively. The index climbs 0.2 percent to 1,597 points, its third straight gain since slumping to a four-week low on Wednesday.
“Although it is believed that some banks are liquidating certain collateral portfolios to settle some group’s debts, the market is still holding well,” says Mohammed Yasin, Shuaa Securities chief executive. “We would have liked it to close above the 1,600 level, but the trading value is not there.”
Takaful Emarat climbs 4.2 percent ahead of its Wednesday board meeting. Islamic Arab Insurance Co. rises 2.5 percent after its board approves a 5 percent cash dividend, plus 5 percent in bonus shares.
Industries Qatar tumbles to a month low after its fourth-quarter earnings disappoint, weighing on Doha’s benchmark.
IQ drops 3.9 percent to its lowest finish since Feb. 1. The conglomerate reported a net profit of 1.07 billion Qatari riyals ($294.1 million) for the fourth quarter.
A Reuters poll of analysts had forecast a quarterly profit of 1.3 billion riyals. Meanwhile, the Tadawul All-Share Index dropped 0.4 percent to 6,843 points, its first decline in three sessions. Banking stocks are the main drag as index ends lower for a fourth session in five, with investors cashing in early-year gains.
Banque Saudi Fransi falls 1.3 percent, Riyad Bank drops 0.7 percent and Samba Financial Group loses 0.9 percent.
The index falls 0.2 percent to 6,424 points.
“The rally which began in early February remains intact but a retracement to 6,300 is visible at this stage,” Shuaa Capital wrote in a research note.
“Having advised locking in gains after the index’s extended move, we now suggest maintaining tight stops in order to protect the remaining accumulated gains.”
