STOCKS NEWS MIDEAST-Saudi Mobily falls; index resumes decline

Reuters Middle East

0825 GMT - Shares in Saudi Arabia's telcom operator Etihad

Etisalat (Mobily) weigh on the kingdom's bourse after

the firm said the regulator suspended sale of new prepaid cards

until it meets the service's provisioning requirements.

Mobily falls 1.7 percent, despite the company saying

financial impact from the move will be "insignificant,"

according to a bourse filing.

Shares in Abu Dhabi listed Etisalat are flat. The

government of UAE is a major shareholder in both the telcos.

Petrochemical stocks lose ground, giving back some of

Saturday's gains. The sector's index dips 0.8 percent.

Saudi Arabia's index sheds 0.8 percent to 6,614

points, heading for its tenth decline in last 11 sessions.

Worries of a 'fiscal cliff' and Greek's debt woes hit investor

sentiment in Saudi Arabia in recent sessions.


0612 GMT - Dubai's property-related stocks rise after the

emirate's ruler announced plans for a new master project,

lifting the share index to a week-high.

Emaar Properties, the largest listed company on

the Dubai bourse, rises 4.7 percent, while builder Arabtec

adds 3.5 percent and developer Deyaar climbs

1.5 percent.

Property stocks are among the most liquid and so tend to

exaggerate market moves.

Dubai's ruler on Saturday announced plans for a huge retail

and tourist development in the city that appeared to include

re-starting projects that were halted following a property price


The index climbs 1.2 percent to 1,616 points, up for a

fourth session since Nov. 19's seven-week low.

Abu Dhabi's benchmark rises 0.1 percent to 2,644


Dana Gas is the most notable mover, adding 5.1


The natural gas producer, in talks to restructure a $920

million Islamic bond, is offering bondholders cash and an

average 8 percent coupon on two new sukuks to replace the

existing one, two sources said.


0535 GMT - Gulf Arab stocks are expected to be muted in

early trade on Sunday, with investors waiting to see if the

later-opening Saudi Arabia bourse will hold onto the

previous day's gains before committing cash to other markets.

Saudi's index rose 0.8 percent on Saturday, ending a

10-session losing streak as oil price gains drew buyers back to

petrochemical stocks, although it is too early to say whether

the kingdom's bourse has bottomed out, says Sebastien Henin,

portfolio manager at The National Investor.

That means investors in the United Arab Emirates will have

one eye on the Saudi bourse open at 0800 GMT - two hours after

trading in the UAE starts - and if this is positive it could

draw in more buyers to Dubai and Abu Dhabi, Henin says.

"It could be a quiet session and I don't expect a lot of

volatility," says Henin. "The news flow is very poor - it's very


World stocks rose on Friday on signs of progress in talks on

releasing aid to Greece, which should boost regional sentiment,

says Marwan Shurrab, vice-president and chief trader at Gulfmena

Alternative Investments, although political turmoil closer to

home could have a more telling influence.

"We're still not seeing the resolution of political issues

such as in Egypt and Syria and that will push investors away

from risk at the current time," adds Shurrab.

Property-related stocks in the UAE could be a target for

speculative trade after Dubai's ruler announced plans for a huge

retail and tourist development in the city that appeared to

include re-starting projects that were halted following a

property price crash.

(Reporting by Nadia Saleem,; Editing by Bernardo Vizcaino)

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