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Gulf Shares mixed, Dubai ends lower for the sixth session
Released on - Thursday,05 November , 2009 -18:24 37
Dubai's index ends lower for the sixth session in eight, with property-related stocks again the major losers as volumes fall to a seven-week low.
Emaar Properties drops 3.5 percent, Arabtec slides 3.8 percent and Deyaar loses 2.7 percent.
Dubai's index falls 1.9 percent to 2,098 points as a late rally enables it to rebound from an intraday low of 2,074.
World markets are down on Thursday, with investors reducing positions ahead of the release of U.S. jobs data later in the day.
"The correlation between Gulf and U.S. markets has been exaggerated -- we've faced selling pressure all week after U.S. markets fell sharply last Friday," says Mohamed Abu Ghoush, head of equities brokerage at Ah-Ahli Bank.
"It's time for Gulf investors to realise this is an overreaction and start rebuilding positions at these lower levels - today's seller might be tomorrow's buyer."
On Wednesday, ratings agency Moody's downgraded five Dubai government-linked firms, but Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading, says this had no effect on the market.
"Moody's adjustments to Dubai GRI's ... will affect their cost of funding but wasn't a factor in the market moves today in my view," says Wakeman.
DP World was one of this quintet and its shares are steady, rising 0.2 percent, although they have fallen 16 percent since Oct. 26.
Abu Dhabi's benchmark also declines for the sixth time in eight sessions as volumes fall to a two-week low. Sorouh Real Estate is the most active stock, claiming a fifth of all shares changing hands on the index, and it drops 4 percent, which means it is down by about a quarter in a little over three weeks. Technical analysis points to further declines in the stock, says Shiv Prakash, a MAC Sharaf Securities analyst.
None of Abu Dhabi's 15 largest stocks advance. Abu Dhabi National Energy Co (Taqa) drops 3.6 percent.
Industries Qatar rallies after the company says a new plant will almost double its fertiliser capacity, but the Doha index closes lower for the second time in three sessions.
Industries Qatar rises 0.7 percent. On Thursday, the government-linked firm said the completion of the Qafco-6 plant would raise the urea production capacity of its unit, Qatar Fertiliser Co (Qafco), to 5.6 million tonnes a year by 2012.
"If Qafco can guarantee the sale of this new urea capacity, this should be very positive for the company's revenues and bottom line," says Hala Fares, an analystat Shuaa Capital.
Banks weigh, with Qatar National Bank and Doha Bank losing 0.6 and 2.1 percent respectively. The index slips 0.1 percent to 6,953 points.
A late rally helps Kuwait benchmark end slightly higher, rising 0.1 percent to 7,334 points.
Zain falls 3.3 percent, a day after European telecoms operator Millicom says there could be opportunities to pick up some of its Kuwait rival's African assets.
Bahrain's measure climbs 0.1 percent to 1,507 points.
Muscat's benchmark retreated by 0.06 percent to 6333.07 points.
Source: Reuters