Many regional investors remained on the sidelines, awaiting
reactions from global markets on Monday, after world stocks and the euro
slumped last week. Worry about the most deeply indebted European nations
intensified, as attention shifted from Irish debt to Spain and Portugal.
Property stocks were the biggest losers in the UAE with
Dubai builder Arabtec dropping 2.2 percent to its lowest close since Sept. 6.
Developer Emaar Properties dropped 1.4 percent to its lowest in about three
months.
Courier firm Aramex lost 4.3 percent.
"UAE has seen very low volumes today as investors are
worried about how the international markets will react in the coming
days," said Rami Sidani, Schroders Middle East head of investment.
"The fall in UAE stocks is a reflection of what is
happening in global markets."
Dubai's government said it may sell stakes in state-owned
companies and plans to open the capital of leading companies to the public. The
news had no major impact on UAE bourses.
Dubai's index fell 0.4 percent to 1,660 points - its lowest
close since Sept. 16.
Aldar Properties, Abu Dhabi's largest developer by market
capitalization, fell 2.7 percent, weighing on index which slipped 0.3 percent
to 2,750 points.
In Kuwait, telecoms operator Zain was the main drag as the
index slumped to a two-month closing low. Zain dropped 1.4 percent.
HSBC pulled out of the arranging group for Zain's proposed
$1.5 billion loan, leaving six banks to arrange the financing, sources said on
Friday.
"I wouldn't read too much into this news - the banks
that remain involved amount to a pretty strong list," said Irfan Ellam,
vice president and telecoms analyst at Al Mal Capital.
"I wouldn't link this with the share price. As we get
closer to completion of the Zain-Etisalat deal, the share price should
strengthen."
The benchmark falls 0.9 percent ending at 6,869 points, its
lowest finish since Sept. 28.
Oman's Bank Muscat climbed 3.2 percent, bucking the regional
trend to reach its highest value in over two years, as gains in its
London-listed global depository receipts (GDR) spurs foreign investors to buy
the lender's shares.
"Bank Muscat is rising primarily because of the GDR
prices," said Adel Nasr, United Securities brokerage manager.
"However, I do not expect it to go much higher."
The Omani index climbed 0.5 percent to 6,582 points.
The Qatari measure dropped 0.8 percent to 8,111 points.
In Saudi Arabia, the Tadawul All-Share Index (TASI) edged up
0.18 percent to 6,309.97 points. The sector activity for the day was mostly
positive with 9 gaining sectors against 6 losing sectors. The gaining sectors
ranged from 0.01 percent by the Agriculture & Food Industries sector to
1.02 percent by the Energy & Utilities sector. On the other hand the losing
sectors for the day ranged from 0.05 by the Real Estate Development sector to
0.94 percent by the Industrial Investment sector. The overall market breadth
for the day was positive with 51 advancers against 62 decliners giving it an AD
ratio of 0.82, the Financial Transaction House (FTH) said in its daily market
commentary.
The stock market turnover reached SR2.36 billion on Sunday.
- With input from agencies
