Middle East markets remained in a sideways trading range,
with few notable stock moves and volumes a fraction of historical
averages.
DP World, which is listed on the Nasdaq Dubai, climbed
3.1 percent to its highest finish since June 23.
"The increase in revenue indicates returning pricing
power to port operators as the global restocking cycle is in progress,"
said Joice Mathew, head of research at United Securities in Muscat. "The
company had been able to contain its costs and increase margins by improving on
efficiencies."
Dubai's index fell for a first day in three, with low
volumes offering little hope of a prolonged uptrend. The benchmark fell 0.4
percent to 1,482 points.
Emaar Properties fell 0.9 percent. Dubai Islamic Bank
fell 0.5 percent after Credit Suisse cut its price target for the UAE lender to
3.17 dirhams from 3.33 dirhams, giving it a neutral rating.
Just over 39 million shares were traded, barely an eighth
of the two-year daily average.
"I believe many investors are resigned that things
will continue in the same trend," said Mohammed Yasin, Shuaa Securities
chief executive.
Yasin said the market needed a trigger to lift sentiment
and with it trading activity. He warned third-quarter earnings were unlikely to
provide this and instead urged government-related institutions to step in and
support the market.
"Many companies are trading at inconsistent
valuations, which strengthens the argument that current prices are down to
confidence, not company performance," said Yasin.
Without improved sentiment, any gains are likely to be
short-lived, he added.
Hesham Tuffaha, Bakheet Investment Group head of
research, highlighted similar mispricing on the Saudi bourse, with valuations
becoming disconnected from company fundamentals.
"Investors need to look at the financial ratios,
some stocks like SABIC and other petrochemical names are trading at around 12
times forward p-e, while others such as many in the retail sectors are 25
p-e," said Tuffaha.
"No one can confidently predict how the market will
perform in the long term because there's so much uncertainty over the global
economy, but in the short-term, these p-e ratios are likely to remain the
same."
Saudi Arabia's Tadawul All-Share Index (TASI) fell 0.66
percent to 6,121.06 points.
The sector activity for the day was negatively biased
with 13 out of 15 sectors closing with losses ranging from 0.13 percent by the
Industrial Investment sector to 1.60 percent by the Insurance sector. On the
other hand, gains were witnessed in only 2 sectors namely Hotel & Tourism
and Retail sector with respective gains of 0.53 percent and 1.40 percent. The overall market breadth for the day
was negative with 15 advancers against 119 decliners giving it an AD ratio of
0.12, the Financial Transaction House (FTH) said in its daily market
commentary.
Qatar's benchmark rose for a third day, although
investors remain wary despite the country's bullish macroeconomic outlook, with
gross domestic product forecast to grow 16 percent in 2010. The index rose 0.2
percent to 7,077 points.
The Kuwaiti index slipped 0.02 percent to 6,654 points.
The Omani index rose 0.3 percent to 6,295 points.
The Bahrain index fell 0.1 percent to 1,414 points.
- With input from agencies
