Disappointing US housing data also weighed on investor
sentiment as oil prices fell for a second straight session on Wednesday after
US industry data showed a surprise jump in crude and gasoline stocks.
Still, Dubai's index rose 0.6 percent to 1,551 points,
largely thanks to property developer Deyaar, which surged 13.7 percent on heavy
volumes.
"This is due to local buying where small stocks see
huge volumes, it's short-term trading," said Musa Haddad, head of MENA
equity desk at National Bank of Abu Dhabi.
Other property stocks also contributed to Dubai's rise, with
Emaar Properties gaining 1.2 percent.
Abu Dhabi's index was flat, inching up just 0.01 percent
higher to 2,551 points.
"There aren't really any drivers, the second quarter
may be better, we may see some good results from companies like Air Arabia,
Emaar Properties and First Gulf Bank," said Julian Bruce, EFG-Hermes
director of institutional equity sales.
"Overall many are still cautious on the banks, Dubai
World still hasn't been booked as non-performing loans so there is a bit of
overhang there," he added.
In Abu Dhabi, investors' attention went to Aabar and Dana
Gas, which advanced 4.8 percent and 2.9 percent respectively.
Aabar rallied on talk that the company could buy back shares
at the conversion price set for their bonds sale.
Dana Gas had announced a 10-percent share buyback.
Stock markets in Oman, Saudi Arabia, Kuwait and Qatar fell.
Traders said investors were reluctant to build positions at
this time in anticipation of the second-quarter results which are expected to
start coming out next month.
"We believe the lack of commitment from the investment
community will continue till the corporates start reporting the Q2, 2010
results," said Osama Ibrahim Al-Qinna, head of brokerage at Oman Arab
Bank.
Saudi stocks ended lower, led by Saudi Basic Industries,
which closed 0.5 percent lower.
The Tadawul All-Share Index (TASI) fell 0.32 percent to
close at 6,343.47 points with only one sector posting gains. The only Cement
sector saw a gain of 0.27 percent. Sector losses ranged from 0.05 percent in
the Real Estate Development sector, to a loss of 0.44 percent in the Banks
& Financial Services sector. Overall market breadth was negative, with 35
advancers and 80 decliners recording an AD ratio of 0.44, the Financial
Transaction House (FTH) said in its daily market commentary.
The value of Saudi traded shares dropped to SR 3.28 billion
on Wednesday.
The Qatari measure fell 0.2 percent to 7,072 points. The
Omani measure declined 0.6 percent to 6,173 points. The Kuwaiti index fell 0.3
percent to 6,653 points. The Bahraini index edged 0.5 percent higher to 1,413
points.
— With input from agencies
