Dubai stocks slipped to a three-month low in slow summer trading on Tuesday and Oman's index slumped to a 23-month low, dragged by Dhofar Bank which continued to fall after losing a lawsuit. Saudi and Egypt stocks ended higher, tracking oil prices and global stocks which rallied over optimism that the Greek parliament and a French-led plan to roll over sovereign bonds would help ease Greece's nagging debt crisis.
Dubai's benchmark fell 1.2 percent to 1,508 points, it lowest level since March 21. The drop took its losses to 4.4 percent since index compiler MSCI extended to December a review on whether to upgrade the UAE to emerging-market status. "The month of June has been difficult for regional markets on European debt concerns and MSCI uncertainty for UAE and Qatar," said Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain.
Emaar Properties fell 2.3 percent, Dubai Financial Market lost 2.5 percent and contractor Arabtec slipped 1.6 percent. In Oman, the index shed 0.8 percent and fell to its lowest close since July 2009. Bank Dhofar tumbled 4.9 percent to an 11-month low, extending declines since it was ordered to pay 26.1 million rials ($67.8 million) as part of a lawsuit filed by Oman International Bank (OIB).
Ahli Bank slumped 3.7 percent. "For the near-term, market activity will remain range bound," said Kanaga Sundar, Gulf Baader Capital Markets head of research. Investors are reducing positions ahead of second-quarter earning season, which is set to begin in two-weeks, he added.
Saudi Arabia's index hit a two-week high after gaining 0.4 percent, lifted by gains in oil prices. Saudi Basic Industries Corp, the world's largest chemicals producer by market value, climbed 0.7 percent, while National Industrialisation Co jumped 4.1 percent. In Cairo, the benchmark index ended a two-day losing streak, adding 0.3 percent, mirroring gains in global markets.
Egypt's biggest investment bank, EFG-Hermes, rose 0.4 percent. Financial services firm Pioneers Holding climbed 6.6 percent and Ezz Steel added 0.6 percent. In Kuwait, the benchmark eased 0.4 percent. Gulf Finance House (GFH), a Bahrain-based investment firm, tumbled 7.7 percent to an all-time low. Its Bahrain listing fell 3.2 percent. The company has struggled since a 2008 regional property crash. Blue chip National Bank of Kuwait dropped 3.4 percent. In Qatar, the index gained 0.5 percent to its highest close in 10 days, trimming its June losses to 1 percent.
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