الرئيسية
DUBAI, Dec 21 (Reuters) - Dubai's bourse slumped to a
seven-year low on Wednesday as risk-wary investors sold stocks,
while Saudi Arabia's index hit a four-month high and
other regional markets were mixed.
Dubai's index fell 1.8 percent to close at its
lowest level since June 2004.
"Liquidity has been very thin and there is no interest in
the market," said Rami Sidani, Schroders Middle East head of
investment. "There is no fundamental reason. People are taking
risk off the table before the holidays."
Bellwether Emaar Properties fell 3.1 percent,
contractor Arabtec shed 3 percent and telecoms
operator du lost 2.7 percent.
Abu Dhabi's stocks were also lower, with the index
declining 1.3 percent to 2,343 points, its lowest close since
March 2009.
Aldar Properties fell 3.5 percent to a new
record-low despite saying it had no plans to delist from the Abu
Dhabi stock exchange.
First Gulf Bank dropped 2.6 percent.
"Up until earnings in Q1 next year, you'll see further
volatility in the market," said an Abu Dhabi-based trader who
declined to be names. "Because people are expecting the worst,
any improvement could result in a relief rally."
In Saudi Arabia, Almarai Co hit a 10-month high
after saying it had acquired Argentina farm operator Fondomonte.
The deal will help the Gulf's biggest dairy firm by market
value to secure feed for its dairy herd and poultry businesses.
Shares in Almarai gained 2.8 percent to reach their highest
close since Feb. 21.
"Almarai's acquisition ... is a move upstream, which will
allow them to both secure feed supplies and boost profit margins
in the future," said Sleiman Aboulhosn, assistant fund manager
at Dubai-based Al Masah Capital. "The end result may be a
noticeable improvement in the company's overall profitability."
Southern Province Cement hit an all time high,
rising 5.1 percent. The firm said in a statement it expected its
quarterly earnings to rise 48 percent.
The kingdom's index climbed 0.7 percent to its highest close
since Aug. 3.
Saudi insurance firm Allianz SF jumped 9.7 percent
after saying its founding shareholder Allianz France
International will merge with Allianz France.
Most petrochemical stocks also rose, with Saudi Basic
Industries Corp (SABIC) climbing 1.1 percent, the main
support for the index.
Traders now believe gas subsidies to petrochemical producers
will remain at current levels for the next year, having
previously thought these subsidies could be cut, said Turki
Fadaak, head of research at Al Bilad Investment.
"There is talk that contracts will be extended," he said.
Saudi Hollandi Bank gained 3.2 percent. The lender
said it planned a 20 percent capital increase through a bonus
share issue. It also proposed a cash dividend of 1 riyal for
2011.
In Kuwait, the index ended 0.2 percent lower at
5,812 points, while bourses in Oman and Qatar ended near-flat.
WEDNESDAY'S HIGHLIGHTS
DUBAI
* The index dropped 1.8 percent to 1,336 points.
ABU DHABI
* The index declined 1.3 percent to 2,343 points.
SAUDI ARABIA
* The index gained 0.7 percent to 6,330 points.
EGYPT
seven-year low on Wednesday as risk-wary investors sold stocks,
while Saudi Arabia's index hit a four-month high and
other regional markets were mixed.
Dubai's index fell 1.8 percent to close at its
lowest level since June 2004.
"Liquidity has been very thin and there is no interest in
the market," said Rami Sidani, Schroders Middle East head of
investment. "There is no fundamental reason. People are taking
risk off the table before the holidays."
Bellwether Emaar Properties fell 3.1 percent,
contractor Arabtec shed 3 percent and telecoms
operator du lost 2.7 percent.
Abu Dhabi's stocks were also lower, with the index
declining 1.3 percent to 2,343 points, its lowest close since
March 2009.
Aldar Properties fell 3.5 percent to a new
record-low despite saying it had no plans to delist from the Abu
Dhabi stock exchange.
First Gulf Bank dropped 2.6 percent.
"Up until earnings in Q1 next year, you'll see further
volatility in the market," said an Abu Dhabi-based trader who
declined to be names. "Because people are expecting the worst,
any improvement could result in a relief rally."
In Saudi Arabia, Almarai Co hit a 10-month high
after saying it had acquired Argentina farm operator Fondomonte.
The deal will help the Gulf's biggest dairy firm by market
value to secure feed for its dairy herd and poultry businesses.
Shares in Almarai gained 2.8 percent to reach their highest
close since Feb. 21.
"Almarai's acquisition ... is a move upstream, which will
allow them to both secure feed supplies and boost profit margins
in the future," said Sleiman Aboulhosn, assistant fund manager
at Dubai-based Al Masah Capital. "The end result may be a
noticeable improvement in the company's overall profitability."
Southern Province Cement hit an all time high,
rising 5.1 percent. The firm said in a statement it expected its
quarterly earnings to rise 48 percent.
The kingdom's index climbed 0.7 percent to its highest close
since Aug. 3.
Saudi insurance firm Allianz SF jumped 9.7 percent
after saying its founding shareholder Allianz France
International will merge with Allianz France.
Most petrochemical stocks also rose, with Saudi Basic
Industries Corp (SABIC) climbing 1.1 percent, the main
support for the index.
Traders now believe gas subsidies to petrochemical producers
will remain at current levels for the next year, having
previously thought these subsidies could be cut, said Turki
Fadaak, head of research at Al Bilad Investment.
"There is talk that contracts will be extended," he said.
Saudi Hollandi Bank gained 3.2 percent. The lender
said it planned a 20 percent capital increase through a bonus
share issue. It also proposed a cash dividend of 1 riyal for
2011.
In Kuwait, the index ended 0.2 percent lower at
5,812 points, while bourses in Oman and Qatar ended near-flat.
WEDNESDAY'S HIGHLIGHTS
DUBAI
* The index dropped 1.8 percent to 1,336 points.
ABU DHABI
* The index declined 1.3 percent to 2,343 points.
SAUDI ARABIA
* The index gained 0.7 percent to 6,330 points.
EGYPT