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Gulf markets follow global exchanges

As expected, Gulf markets followed deteriorating world markets and fell yesterday, except for Bahrain which rose slightly. After Saturday's sharp decline of Saudi's Tadawul by 2.8%, the exchange rebounded in the last few minutes of yesterday's session to finish up by 0.12%.

By Abdul Rahman Ismail

Three markets fell including Abu Dhabi, Muscat and Doha by 1% each, while Dubai and Kuwait managed to contain losses by declining 0.50% each.

UAE: Dhs6.7bn new losses

UAE shares added new losses of Dhs6.7bn to last week’s losses of Dhs14bn, after the sharp decline in the Abu Dhabi Securities Exchange.

Mohammed Ali Yaseen from Shuaa Capital told AME Info that local market have been negatively affected by world markets despite the good performance of UAE companies, which will show clear H1 profits.

He added that foreign portfolios, as expected, started to sell in the beginning of the session as managers find themselves obliged to sell to strengthen their financial status in their respective markets after the huge losses.

Yaseeb predicts that local markets will improve once external factors are over.

Dubai Financial Markets started with a sharp fall which then lasted for the whole session after pressure came from all leading sectors including Emaar which fell sharply to Dhs11.75 before returning to its previous prices of Dhs11.85.

Emaar dominated 17% of the total market trading, which only reached Dhs666m.

Many leading shares fell sharply and approached the resistance mark including DFM share value, which was about to break the Dhs5 mark after declining by 2.5% to Dhs5.09.

Dubai Islamic Bank shares fell by 1.5%, closing at Dhs8.02.

According to DFM statistics, the foreign funds failed to achieve strong sales, totalling Dhs140.6m against purchases of Dhs132m.
It was noticed that Gulf investors’ sales reached Dhs48.89m against purchases of Dhs29.4m.

Other Arab investors bought shares worth Dhs79.1m against sales of Dhs74.3m.

The sharp decline of Etisalat and the energy sector led the Abu Dhabi index to fall sharply, approaching the 4.900 points mark.
Etisalat fell by 1.5% to Dhs1,950.
�Speculations are back on Rak Cement which rose by the maximum limit of 10%, while Methaq shares fell by 1.1% despite dominating 50% of the total market trading which reached Dhs1bn.

Saudi Arabia: Downward trend slowed

Saudi�s Tadawul market started the session with same downward trend it began with yesterday as the market kept fluctuating, with support coming from Sabic.

The index broke the 9.300 points mark to reach 9.252 points but managed to recover after support came from the banking and energy sectors, eventually closing at 9.324 points.

Electricity shares rose by 2% to SR12.50 after the company announced four new power deals and its intention to issue Sukuk to finance expansion.

Inmaa bank also rose by 2.8% and Al Rajhi by 0.87%.

Sabic failed to keep its upward trend and declined by 0.89%, while other energy related firms rose, including Yansab by 2.2%, and Petrorabigh by 0.42%.

Saudi Telecom Company shares rose by 0.41%, as did Zain by 0.15% while Mobily remained down by 0.94%.

Kuwait: Last minute rally

Kuwait stock Exchange managed to minimise its losses after third session of profit gaining and eight continuous rising sessions.

Pressure came from all leading sectors including NBK which fell by 2.1%, Kuwait Commercial Bank by 2.6%, Bayan by 2.7%, and Zain by 1.2%, while Automated Network and Manah Holding shares declined by 7.2% and 5.8% respectively after record rises last two weeks.

Doha and Muscat: Banks lead the decline

Heavyweight Qatar industries along with the banking sector have led the decline on the Doha market, which is seeing continuous falls since failing to stay above the 12.000 points mark.

Qatar Industries share fell by 1.2%, while four shares only out of 39 traded in the market dominated 61% of the total 12.9 million trades.

These include Al Rayan which fell by 1.3%, Gulf Holding by 1.2%, Naqilat by 0.77% and Khaliji bank by 3%.

Banks were also behind the sharp decline of Muscat�s market, especially Muscat bank shares which fell by 0.50% to OR1.801 despite dominating 25% of the total trading.

Arab National Bank fell by 1.45% and Suhar bank by 0.81% while Omantel declined by 1.2% to OR2.267.

Bahrain slightly up

Bahrain ended the day with the same slight rise of last week which reached 0.08%.
This was led by Ithmaar which rose by 1.3%, while Khaleeji Commercial bank dominated 62.5% of the total 4.8 million traded shares but declined by 0.97%.