Emaar buys back shares, UAE markets gain Dhs18.2bn

The DFM reacted positively, closing up 1.5% on the day and 1.6% for the week.

But Dubai was the only winner today among the regional markets. In Kuwait, traders protested against the continuous decline, which has seen the index lose 9.2% in one week, although still less than the Tadawul, which ended its week yesterday down 10.2%.

On the markets today, the Kuwait Stock Exchange fell by 3.3% today, Muscat fell by 2.4% and 2.1% during the week and Bahrain was down 0.80% and 1.2% over the week. Doha was the biggest loser of the day by 4.4% and a 3% over the week. Meanwhile Abu Dhabi Securities Exchange (ADX) was down 2% today, but managed to end the week up 4.6%.

For second consecutive week, UAE shares gained ground, closing this week up Dhs18.2bn after last week's gain of Dhs20bn. Their weekly value reached Dhs7.6bn, made up of Dhs5.1bn for DFM and the rest for ADX.

DFM up after Emaar intervention

Around 30 minutes before the market closed today the index was 3% down, but Emaar then announced it was buying 10% of its shares, pushing the index up.

Emaar will start buying its shares three days after announcing its third quarter profits, which fell 3.8% due to Dhs750m of loses at its US affiliated firm.

Once Emaar started to buy its shares, the price jumped from Dhs5.35 to Dhs6.01 before closing at Dhs6 up 4.5%. This is still down heavily from its pre-summer price.

Other leading shares also rebounded after Emaar's move, including Air Arabia up 1.5%, DFM 1.5% and Arabtec 5%.

Mohammed Ali Yaseen, CEO of Shuaa Capital, said Emaar's move restored some confidence in the market, even though the company had waited too long to save its share, which has declined below its nominal value.

Yaseen expects Emaar's move to encourage other firms to buy back their shares, especially once prices became very attractive.

Aldar and Sorouh pressurise ADX

Real estate shares continued to pressurise the index, particularly Aldar and Sorouh, which fell by 5.7% and 6.4% respectively.

'Oman and UAE for Investment' and Rak Ceramic fell by their maximum limits, while First Gulf Bank rose by 1.3%, after the bank posted a 68% rise in Q3 profits. Sharjah Islamic Bank also rose by 0.50%, after the bank announced a Dhs287.1m profit compare to Dhs171.8m.

Kuwait traders protest the decline

The continuous losses pushed Kuwaiti traders to demonstrate outside the market, urging the government to rescue the bourse which saw a 9% weekly decline.

All sectors declined, especially services, banks and investments, while leading shares like Zain fell by 6.5% in a sign of dissatisfaction among traders about the slight rise in Zain's profit compared to last year.

Kuwait International Bank profits grew by 295% in nine months to reach KD33.6m, while the third quarter profit fell by 40.6% and the share fell today by 3.7%. Iktitab also fell today by 5.1% despite a 160% rise in profits.

Doha: strong profits for Waqwoud and Mawashi

All 39 traded shares declined today, except Waqoud, which rose 6.3% after the company posted a 67% rise in profits.

Mawashi fell by 2.1%, despite a 307.6% rise in profits, while Medical share fell by 3.6% despite posting QR7.7m profits.

Muscat sees collective decline for all shares

All traded shares declined on the Muscat market today, except Oman Petrochemical and Oman Chlorine which rose 1.1% and 0.23% respectively. The market trading value also fell to OR5m and 10.5 million shares.

Other leading shares fell. Muscat Bank was down 1.7%, Sohar Bank 1%, Dhofar Bank 3.5%, National Bank 3.5%, Oman International Bank 1.7%, while Omantel fell by 1.5% to OR1.864.

Bahrain: Batelco moves against the trend

The decline on the Bahrain market was led by GFH, Ithmaar Bank, Al Salam Bank and Esterad, which fell by 10% after the company posted sharp Q3 losses following the world credit crisis.

Batelco and Al Saif Real estate, in the meantime, showed good results and rose by 0.78% and 3.8% respectively.

Bateclo already announced a BD81.7m profits in the first nine months.
Gulf Construction which posted an 88% rise in profits closed unchanged today at US$1.85.