Tadawul index rises slightly

Author: 
NADIA SALEEM | REUTERS
Publication Date: 
Wed, 2011-07-06 00:49

The emirate's index climbed 0.5 percent to 2,729 points - a two-week high. Abu Dhabi Commercial Bank rose 2.2 percent and Abu Dhabi Islamic Bank added 2.4 percent.
"The markets have done pretty well to consolidate - we're probably four weeks away from major earnings results and it will be sideways and drifty until then," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
"People are positioned for the results, but need evidence of earnings growth before building new positions."
Dubai's index gained 0.2 percent to hit a two-week high at 1,559 points, but volumes slumped to a three-week low.
Logistics operator Aramex rose 0.6 percent, Dubai Financial Market gained 0.8 percent and Emirates NBD climbed 1.6 percent.
In Qatar, the index ended 0.2 percent higher at 8,502 points - a fresh six-week high.
Gainers outnumbered losers 12 to six, with Qatar Islamic Bank up 1.5 percent and Industries Qatar climbing 0.4 percent.
However, investors are uncertain about how a central bank ruling will affect conventional lenders' profits.
Qatar's central bank in February ordered all commercial banks to shut down their Islamic banking operations by the end of 2011.
"People are slightly confused with the new regulations and what the likely impact of that will be," said Ibrahim Masood, senior investment officer at Mashreq Bank. "It would have altered profitability significantly and there's not a lot to go on other than banks."
Islamic banks should gain market share following the rule change.
Oman's shares also rose, up for a fourth session.
The benchmark ended 0.3 percent higher 5,950 points, extending gains since reaching a 23-month low on June 28
Investors picked up beaten-down stocks ahead of second-quarter earnings disclosures.
"The market will remain at the same levels for the next few days, waiting any positive results for the second quarter," said Osama Ibrahim Al-Qinna, head of brokerage at Oman Arab Bank.
"Resistance is at 6,080 level and support at 5,816."
Oman Telecommunications Co. (Omantel) gained 0.5 percent and National Bank of Oman rose 0.3 percent.
Gainers outnumbered losers 14 to five.
Elsewhere, Kuwait's index ended 0.3 percent higher, rising for a second session since Sunday's four-month low.
Mobile operator Zain climbed 2 percent, Kuwait Finance House gained 2.1 percent and National Industries Group advanced 4.5 percent.
Egypt's index ended 0.2 percent higher at 5,439 points on Tuesday.
The Kuwaiti measure gained 0.3 percent to 6,214 points.
In Saudi Arabia, the Tadawul All-Share Index (TASI) edged up 0.02 percent to 6,626.95 points.
The Bahraini index eased 0.03 percent to 1,317 points.

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