Gulf markets decline on first day of Ramadan

The Dubai Financial Market (DFM) fell by 0.38% and the Tadawul dropped slightly by 0.06%. But Muscat rebounded 1.7%, after huge losses in the last three sessions, and Doha managed to keep its momentum for second session, closing up 1%.

Analysts believe that Ramadan will be a month of market fluctuation. Today trading values were low. The DFM traded just Dhs350m, the ADX Dhs260m, the Saudi market SR2.1bn, Kuwait KD74m and under BD500,000 in Bahrain.

Dubai: Empty trading halls

Dubai Financial Market trading halls were almost empty today, as most traders preferred to stay away in the first day of Ramdan.

Despite its weak start, the market picked up before later coming under pressure from Emaar, which closed down 0.54% to Dhs9.06. Emirates NBD also fell by 0.90%, while Dubai Islamic Bank fell by 0.13% and Arabtec closed unchanged at Dhs14.60.

Reports show that foreign investments funds are back on track in the market, with buying of Dhs63.5m against sales of Dhs61.4m, while Arab investors continued to sell as seen today with Dhs55.8m.

Abu Dhabi: Decline led by real estate

The ADX declined sharply today, led by the real estate sector, amid low trading which barely reached Dhs261m, including Dhs100m for Aldar which fell sharply by 4.1%.

Sorouh also fell sharply, by 2.8%, meanwhile analysts believe that the real estate sector has been negatively affected by reports from regional and international financial institutions which expect property prices to decline in the UAE.

Energy sector shares also saw sharp falls, including Dana Gas by 3% to Dhs1.56.

Tadawul trading dips to 2008 lows

The Saudi market continued to fluctuate during a session which saw Sabic coming under pressure, falling 0.39%.

The Tadawul traded only SR2.1bn compared to its average of SR5bn this year, with 56.6 million shares changing hands compared to 150 million shares usually.

Petrochemical shares fell, including Kayan, down 1%, Yansab by 0.96%, Al Mutaqademeh by 0.49% and Al Tasnee by 1.2%.

Banks fared better though. Samba rose 0.64% to SR77.50, after a positive report by NBK Capital, which set its fair price at SR91. In the telco sector, STC rose 0.38% and Mobily 1.6%, while Zain closed unchanged.

Kuwait suffers worst decline

Kuwait Stock Exchange declined 1.6% as a result of a lack of liquidity in a market heading for IPOs.

All listed sectors fell today, including a strong decline in the industry, investments and services sectors.

Trading value also fell, to KD74m with 126.7 million shares traded. Leading shares fell, with Agility down 6.7% , Zain 2.3%, and NBK and KFH 2.2% each.

National Industries Holding also fell by 7.1%, despite an announcement by the company that it will raise its capital by 255%.

Muscat: Strong rebound

After three declining sessions, the Muscat market rebounded thanks to support from the banking, industry and services sectors. Omantel, Gulfar and Bank Muscat dominated half of the total trading, which reached OR10.4m.

Omantel rose by 2.8%, Gulfar 1.2% and Muscat 0.44%, while Omani Mills registered the highest rise of 7.5%.

The previous declines seen in the Omani market have made many share prices attractive, encouraging portfolios to buy shares in large quantities.

Doha market up on Qatar Industries and banks shares

Doha market continued its upward trend, with support from Qatar Industries and banks, which pushed the index above 10,500 points.

Qatar Industries rose by 0.36% and the company announced that it will invest $21bn in expansion projects by 2010.

Qtel share also rose by 1.4% after the company announced that it's keen on entering the Iranian market as part of its aspiration to be among the biggest 20 telecom firms in the world.

Qatar National Bank too rose by 1.2%, QIB 0.84% and Al Khaliji 1.3%.

Bahrain: Weak transactions

The Bahraini market saw a lack of liquidity amid low trading value, which was below BD500,000, half of which went to Al Salam Bank, which rose by 0.41% after Global announced that it will raise its stake to 65.3 million shares, representing 5.46% of the bank's capital.

Ithmaar also fell by 2.8%, Batelco 0.71% and Al Saif 1% after a series of strong rises.