[2008-05-13]  Gulf markets end lower; Saudi up
Shares in Saudi Arabia, the Middle East’s largest market, closed higher yesterday on value buying after a sharp fall on Saturday. However, all other Gulf markets, barring Bahrain, closed in the red with a political crisis in Lebanon also impacting regional investors’ sentiment.

The Saudi market was up 2%% to 9695.29 at close, recovering a majority of Saturday’s 2.8% losses. It is the Gulf’s worst performer this year to date, down more than 13%. “The market broke below 10,000 on Saturday because of the political crisis in Lebanon and investors holding their money, waiting to buy Al Inma Bank shares when they are listed. Sunday we’re seeing attractive valuations as shares were oversold Saturday and the Lebanon violence is coming to an end, which is spurring positive sentiment,” said Abdulaziz al-Mediheem, head of portfolios at Riyad Bank.

Samba Financial Group rose 6.1% to 95.50 riyals after falling 5.8% on Saturday. Riyad Bank gained 0.9% to 83.75 riyals. The lender will hold its extraordinary general meeting Monday to approve a 13.1bn riyal ($3.5bn) rights issue. Al Rajhi Bank closed up 0.9% to 87.75 riyals after falling 4.4% on Saturday. Global Investment House gave Al Rajhi a reduce recommendation with a valuation of 81.66 riyals a share in a report on Wednesday.

The Dubai market closed down 1.5% to 5741.55. It is down more than 3% for the year. Abu Dhabi shares fell 0.6% to 5006.24 at close. The market is up almost 10% in 2008 so far. “The political issues in Lebanon are creating negative sentiment in both UAE markets and there is a slowdown in volumes. This negative sentiment is short term though and it won’t last,” said Mohamed Ali Yasin, managing director at Shuaa Securities.

Abu Dhabi Aviation gained 5.8% to 5.97 dirhams. Dubai shares see resistance at 5800 while Abu Dhabi shares find resistance around 5000, added Yasin. Kuwait shares closed down 0.6% to 14966.3. The bourse’s benchmark index is up 19% for the year.

The National Industries Group Holding, Kuwait’s fourth largest company by market value, fell 2.8% to 1.400 dinars. The stock has fallen 3.8% since May 4, when the company said its first quarter net profit rose 2.7% to 61.4mn dinars from a year ago. Bahrain shares were up 0.4% to 2824.86 at close, led by banks. The market is up 2.5% in 2008 so far. Muscat stock market closed down 0.4% to 11276.74, led by industrials. The market is the best Gulf performer this year to date, up almost 25%.



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