Gulf markets mixed; Panic hits Egyptian stocks 

(MENAFN - Arab News) The Kuwaiti market closed on a mixed note this week. The price index traded horizontally gaining 0.07 percent closing at 5,856.4 points, according to a report from Kuwait Financial Center (Markaz).

Reuters said Gulf markets were mixed, with Dubai's index falling 1.2 percent Thursday to trim to 10.4 percent its gains since mid-January's seven-year low as disappointing results from some companies spurred investors to lock-in recent gains.

Markaz said the Kuwaiti stock exchange's weighted index was slightly negative, down 0.14 percent and closing at 404.51 points.

Liquidity and activity levels decreased during the week. Value traded contracted by 7.5 percent. During the week the market traded 1.23 billion shares with a value of KD118.6 million.

This week's traded value was derived from activities on the Investment sector 30 percent contribution, followed by Services and Real Estate with 24.9 percent and 17.5 percent, respectively.

HITS Telecom Holding attracted 11.5 percent of the value traded (KD13.6 million); the stock closed up 16.5 percent at KD0.099.

Al-Madina For Finance and Investment was second on the most active list with 8.3 percent of this week's value traded or KD9.89 million. The stock's performance was negative [-1.4 percent] at KD0.069.

The Markaz report said 133 companies were traded during the week out of which 43 closed positive, 61 were negative and 29 unchanged.

HITS Telecom Holding was the biggest gainer by booking a return of 16.5 percent and closing at 99 fils; 146 million shares were traded valued at KD16.67 million.

On the other side of the spectrum, Kuwait Remal Real Estate was the biggest loser; the stock declined by 25.6 percent to 290 fils.

The report said 31.5 million shares worth KD9.5 million were traded during this week.

Reuters added that Egypt's bourse made its largest decline in six weeks on Thursday after 74 people were killed in violence at a soccer stadium, a fresh setback for a country struggling with weak security a year after its president was overthrown.

The main index ended 2.2 percent lower, regaining some of its lost ground after having fallen more than 4 percent at the open as Mobinil and its parent company Orascom Telecom Media and Technology rose 4.1 and 4.5 percent respectively to offset declines in other stocks.

"The market is in a panic after what happened yesterday," said Omar Darwish of brokerage CIBC.

Commercial International Bank dropped 4.3 percent and property developer Palm Hills dipped 3.4 percent.

In Dubai, Union Properties fell 9.8 percent, its largest decline in more than two years, after reporting a widening annual loss.

The firm's chief executive told a local newspaper in January it had reached a 1.03 billion debt deal with major shareholder Emirates NBD. "Union Properties numbers were expected to be bad - the stock did rally hard on the back of the refinancing news and the results are a reality check - the company hasn't gone back into profitability," said Haissam Arabi, chief executive and fund manager at Gulfmena Investments.

Dubai Islamic Bank dropped 4.1 percent, with investors seemingly disappointed by its proposed 15 percent cash dividend for 2011.

"It's some healthy profit-taking that will invite people who missed the boat to take positions prices at lower prices," said Arabi.

"I see any pull-back being short-lived."

Mashreq bank plunged 9.9 percent, a day after its results showed a 59 percent quarterly earnings drop.

"A lot of (UAE bank) lending is secured against property assets and the value of these assets has fallen sharply and may worsen still, which is a contributing reason why banks are not aggressively lending," said Raj Madha, Rasmala MENA banking analyst.

Abu Dhabi's benchmark climbed 0.4 percent, its 11th gain in 12 sessions.

"There's been a good start to the year globally that has helped sentiment worldwide," added Gulfmena's Arabi.

"There's optimism Greece's debt problems will be resolved and the worst for the euro zone is over, with an overall good feeling in the market I've haven't felt for a long time.

"Decent volumes are coming back to the market. This is the first leg in an uptrend that could become a bull market - the trend may have reversed."

Oman's index rose for a first session in five, but liquidity remained thin.

Bank Muscat, which in December said it would launch a 259.7 million rights issue, was the main support, adding 0.1 percent.

"Liquidity is low because there's a lack of participation from retail traders - about 60 percent of trading is from institutions and you need more retail trading for the market to rally," said Adel Nasr, United Securities brokerage manager.

"There are a couple of IPOs from Islamic banks due in the coming months and people also want to subscribe to Bank Muscat's rights issue."

Last month, Oman's central bank said two Islamic lenders would float 40 percent of their shares by June.