Markets seen flat ahead of Q3 results
Dubai, October 13, 2009
Gulf markets are seen range-bound on Tuesday, with investors reluctant to open new positions ahead of third-quarter results.
"The bullish sentiment remains intact, but we're now into earnings season and so the market is taking a pause before reassessing what direction to take thereafter," said Ali Khan, managing director and head of brokerage at Arqaam Capital.
"I expect markets to remain range bound until the numbers are out. Most investors have positioned their portfolios already."
Khan says Qatar and Saudi Arabian banks are likely to outperform and bellwether stocks across the region should also prosper.
"Saudi and Qatar banks should build on the momentum demonstrated in Q2, while there are some other pretty important catalysts coming up such as Emaar Properties starting to hand over the Burj Dubai project by the end of this quarter," added Khan.
Saudi Investment Bank on Tuesday reported its profit more than tripled in the third quarter, while rival lender Arab National Bank posted a 0.8 per cent rise in quarterly profit.
Kuwait's Zain should again be volatile as its takeover saga takes a further twist. Shares in the telecoms operator fell more than 4 per cent on Monday, a day after the chairman of Kuwait investment firm Securities Group Co said the firm was studying a bid to buy a stake of up to 24.6 per cent stake in Zain held by the country's sovereign wealth fund.
Asian stocks edged up to a 14-month high in early Tuesday trading, while oil is down slightly after hitting a seven-week high the previous day. Crude falls 0.4 per cent to $72.99 a barrel at 0535 GMT. – Reuters