European stocks edged lower on Thursday, with Wall Street
also set for modest losses. All eyes were set on Seoul where leaders of the
Group of 20 meeting, where plans to talk about rebuilding the global economy
were overshadowed by worsening borrowing conditions in Ireland. Dubai’s index ended on a six-week low
as property stocks weighed on markets in the United Arab Emirates.
Shares of Union Properties, the third largest developer in
Dubai, dropped 4 percent after its third-quarter net losses tripled on low
revenues and losses on valuation of properties.
“There is a negative sentiment in the market based on the
poor earnings reports from the real estate sector,” said Haissam Arabi, chief
executive and fund manager at Gulfmena Alternative Investments.
“In the UAE, the poor third-quarter earnings are
overshadowing the positive sentiments from high oil prices. Besides, there is
the G20 and other global factors. So traders do not want to hold stocks over
the weekend.” Dubai builder
Arabtec fell 2.6 percent and bellwether Emaar Properties dropped 1.3 percent.
The broader index ended lower by 0.9 percent.
Abu Dhabi’s benchmark also dropped, led by developer Aldar
Properties that fell 3.4 percent. The firm posted its fourth straight quarter
loss on Tuesday and said it is in final stages of talks with the government on
its cash requirements.
“There is still a lack of clarity on Aldar,” said Arabi.
“After reports that they may have found a solution for their funding gap there
has been no information from the company.”
In Egypt, blue-chip Commercial International Bank dragged
the market, slipping 1.4 percent after posting disappointing financial results.
“CIB and other blue-chips are mirroring Europe lower today,”
said Karim Hosny of Pharos Securities.
“There is also selling pressure as investors dump stocks
ahead of the Eid holidays,” Hosny adds. Egypt’s benchmark index falls 1.1
percent.
Kuwait’s Zain dropped 6.7 percent as investors react to
mixed signals on the firm’s deal with UAE telco Etisalat. A dispute over
Etisalat’s $12 billion bid to buy a 46-percent stake in Zain escalated after a
Zain board member threatened legal action to block the deal.
The Kuwait index ends lower by 0.7 percent. Markets in Oman and Qatar were the only
gainers in the regional bourses. Oman’s index bucked the trend, rising to a
six-month high, helped by Bank Muscat that gained 1.1 percent. Industries Qatar and Qatar Islamic Bank
led a late rally lifting the Qatar market. Industries Qatar gained 1.4 percent
and Qatar Islamic Bank added 1.8 percent. The benchmark ended higher by 0.4
percent.
