1035 GMT - UAE markets extend gains on the first day of
trading after a long-weekend, but investors book most of the
intraday gains on Dubai's measure.
Courier firm Aramex climbs 1 percent. The stock
jumped 14.4 percent mid-session on what traders say was a
Emaar Properties and Air Arabia add 0.5
and 1.7 percent respectively.
The emirate's index ends 0.2 percent higher at
1,611 points, having rallied to 1,631 points.
Dubai has recovered nearly 19 percent since slumping to a
seven-and-half-year low on Jan. 16 and analyst expect further
upside to the market as it heads into 2013.
"People have to believe in the next 12 months, banks will
reach peak non-performing loan ratio- then impairments will come
down and profits will increase," says an Abu Dhabi-based trader
who asked not to be identified. "There are plus points that
people will bear in mind for 2013. You may see buying coming in
on weakness in UAE."
Abu Dhabi's benchmark ticks up 0.09 percent to finish
at 2,677 points, up for a third straight session.
Elsewhere, Doha's index rises 0.3 percent to 8,354
points, easing away from Monday's four-month low.
Oman's measure ends 0.1 percent higher at 5,564
points, while Kuwait's bourse falls 0.8 percent to 5,907
points, down from Monday's seven-week high.
0846 GMT - Egypt's bourse rallies after the Supreme Judicial
Council cleared the way for a referendum on a new constitution
which President Mohamed Mursi hopes will end a political crisis
that has split the country.
Cairo's benchmark rises 2.9 percent to 4,965
points, with trading volatile since Mursi's decree on Nov. 22
that expanded his powers and sparked widespread protests.
Some judges had called for their colleagues to shun the Dec.
15 plebiscite, which must be supervised by the judiciary like
all elections in Egypt. But the council's decision suggests
enough officials can be mobilised to oversee the vote.
All except two stocks gain. Commercial International Bank
climbs 4.4 percent, Orascom Construction Industries
adds 2.8 percent and National Societe Generale Bank
jumps 5.9 percent.
Elsewhere, large-caps drag Saudi Arabia's market from a
The kingdom's index slips 0.4 percent to 6,705
points. The bourse fell to a 10-month low on Nov. 27 as regional
tensions and worries over the king's health weighed.
Many analysts claim stock valuations are attractive at
Saudi Basic Industries Corp (SABIC) slips 0.3
percent, Etihad Etisalat sheds 0.7 percent and Samba
Financial Group declines 0.4 percent.
0730 GMT - Kuwait's bourse slips from a seven-week high as
investors book recent gains while UAE markets edge higher after
a long weekend.
Kuwait's index declines 0.4 percent to 5,934 points,
trimming year-to-date gains to 2.2 percent.
Ten of the largest stocks on the index are flat, while
selling is focus in small-to-mid caps.
National Ranges slips 2.4 percent, Kuwait
International Bank sheds 1.7 percent and Sokouk
Holding dips 2.3 percent.
Elsewhere, Dubai's measure gains 0.2 percent to
1,612 points, extending year-to-date gains to 19.2 percent, the
best performing Gulf market.
Budget carrier Air Arabia climbs 1.5 percent,
Drake & Scull rises 0.7 percent and Emaar Properties
gains 0.5 percent.
"We've been closed the longest and obviously there's some
catching up to do," says an Abu Dhabi-based trader who asked not
to be identified. "In the next two to three weeks, you'll see
people looking to buy on weakness as bias comes back from brave
buyers. We've had some poor years but the market turned around
in 2012 and there's renewed appetite now."
Dubai's market lost 77 percent of its value since the
beginning of 2008 till the end of 2011. Analysts are now
expecting a revival in the property sector and an approaching
peak for bank's non-performing loans to help support buying on
Abu Dhabi's measure climbs 0.1 percent to 2,678
points, up 11.5 percent so far this year.
UAE's Dana Gas trades flat, recovering
early-session declines and accounting for nearly half the traded
values on the bourse. The energy firm said it received $480
million in payment for Iraq fuels.
Dana is in talks to restructure a $920 million Islamic bond,
offering bondholders cash and an average 8 percent coupon on
two new sukuks to replace the existing one, sources said.
Bondholders will be paid between $80 million and $90 million
in cash and the new bonds will be equally split between a sukuk
and a convertible bond.
"The worry is that the portion of convertible sukuk poses a
risk to equity investors and to buy at these levels. If we see
details on the conversation and it receives other payments, you
will get interest back on the equity for Dana," the trader adds.
Elsewhere, Qatar's measure gains 0.3 percent to 8,352
points and Oman's index climbs 0.1 percent to 5,564
0550 GMT - Regional politics will guide Middle East
investors on Tuesday, with bargain hunters looking for
opportunities in Egypt should the country's political crisis
Egypt's Supreme Judicial Council has cleared the way for a
referendum on a new constitution which President Mohamed Mursi
hopes will ease tensions between his Islamist supporters and
Widespread protests broke out recently over a decree Mursi
issued on Nov. 22 that greatly expanded his powers.
Cairo's benchmark index lost 1.4 percent on Monday,
edging towards last week's four-month low on fears that a
conflict between the judiciary and government bodies would
"Internal issues are overshadowing (international) story
lines, which have faded to a certain extent," says Akber Naqvi,
hedge fund portfolio manager at Al Masah Capital.
"Europe is not as volatile. It's obvious why regional
markets are looking inwards. Once it changes, they could go back
to following the international lead."
In Kuwait, the ruler accepted the government's resignation
on Monday, a step designed to make way for a new cabinet after
parliamentary elections boycotted by the opposition.
Under the constitution, a new government must be formed
before the first session of the new parliament. Emir Sheikh
Sabah al-Ahmad al-Sabah said the new parliament would convene on
The chamber is expected to be more cooperative with the
government than its predecessor because of the opposition
boycott of the vote.
Analysts hope this will kick-start a long-stalled 30 billion
dinars ($106.50 billion) development plan.
In the United Arab Emirates, trading will resume after a
two-day public holiday for National Day.
Elsewhere, Asian shares slipped on Tuesday after a plunge
in U.S. manufacturing activity hit American stocks and the
dollar, while the euro hovered near a six-week high on optimism
over Greece's plan to buy back debt.
(Reporting by Nadia Saleem; Editing by Matt Smith)