Investors book profits in UAE

Gulf bourses were mixed on Monday with investors opting to book gains in United Arab Emirates’ markets, while Egypt rose to a four-week high as retail players targeted lagging stocks.

Dubai's measure retreated 0.5 per cent, halting a four-session rally. The market made a sharp recovery last week and is less than 100 points away from August's five-year peak.

"The momentum going forward in the UAE will be positive but with limited upside," said Ali Adou, portfolio manager at The National Investor in Abu Dhabi. "The market is very volatile and dominated by retail investors. I think it will be difficult to break the year's highs with current volatility."

Shares in Drake and Scull International bucked the trend and gained 1.7 per cent after the firm said its unit won a Dh1.28 billion ($350 million) construction contract in Algeria.

Abu Dhabi's index eased 0.09 per cent, but is up 43.8 per cent year-to-date.

Elsewhere, Saudi Arabia's Kingdom Holding rose 0.8 per cent to a two-month high after its owner, billionaire Prince Alwaleed bin Talal, made bullish comments about his investment in Twitter Inc in a Reuters interview late on Sunday.

Alwaleed, who invested $300 million in Twitter in 2011, said he would not sell any of his shares in the social media giant when it goes public because of its tremendous potential. While the market expects the company's value once listed to be more than $10 billion, Alwaleed said it could conceivably be more than $15 billion.

Kingdom's shares have risen 14.1 per cent in the last six trading days, partly because of news that Twitter is preparing for an initial public offer.

Saudi Arabia's index climbed 0.5 per cent, up for six in last seven sessions. The market is at its highest since August 26 and faces resistance at 8,223 points - the peak of August when it a five-year high.

The building and construction sector index was among the biggest gainers, climbing 1.1 per cent. The cement sector added 0.5 per cent.

Investors are bullish on both sectors, with heavy government infrastructure spending underpinning demand.

In Egypt, the benchmark index climbed 0.5 per cent to 5,554 points, its highest level since Aug. 18.

Shares in Egypt Kuwait Holding (EKH) rose 2.6 per cent, trimming 2013 losses to 37.5 per cent.

It underperforms the wider market, which is up 1.7 per cent on the year. El Swedy Electric co advanced 2.6 per cent.

"It's a retail market today with a shift in interest towards underdogs," said Mohamed Radwan, director of international sales at Pharos Securities.

"EKH has been lagging since it was removed from the MSCI emerging market index. Investors are looking for appealing stocks."

Foreign investor participation is low as they maintain their cautious stance due to political worries and a lack of clarity on future economic outlook.

On Thursday, the government said it will extend for two months a state of emergency across the country.

Elsewhere, Doha's benchmark slipped 0.2 per cent, Oman's index declined 0.3 per cent, while Kuwait climbed 0.8 per cent.

MONDAY'S HIGHLIGHTS

DUBAI: The index slipped 0.5 per cent to 2,646 points.

ABU DHABI: The index eased 0.09 per cent to 3,784 points.

SAUDI ARABIA: The index advanced 0.5 per cent to 8,071 points.

EGYPT: The index climbed 0.5 per cent to 5,513 points.

QATAR: The index declined 0.2 per cent to 9,763 points.

KUWAIT: The index rose 0.8 per cent to 7,789 points.

OMAN: The index slipped 0.3 per cent to 6,607 points.

BAHRAIN: The index advanced 0.5 per cent to 1,191 points.
 

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