Middle East markets: Dubai leads Gulf decliners, Saudi at 5-month high

Dubai's index led losses among Gulf Arab peers on Sunday as investors stayed on the sidelines awaiting earnings reports, while Saudi shares bulked the regional trend to end at a five-month high. Bourse operator Dubai Financial Market fell 2.9 percent, weighing on the broader index which declined 1 percent. Emirates NBD slipped 2.1 percent while Dubai Islamic Bank dropped 1 percent.
"I believe that markets are continuing in their sideway range movement in the absence of news or companies results to change that status quo," said Mohammed Ali Yasin, chief investment officer at CAPM Investment.
"UAE is continuing with its anemic trading values which indicates the continued lack of interest by investors in the equities markets."
In Saudi Arabia, Etihad Etisalat (Mobily) helped lift the index to a five-month closing high, after a research note forecast that the telecoms operator's quarterly earnings would rise am estimated 12 percent.
"Telecoms should outperform due to limited export exposure and inward focus which will offer shelter from (global) volatility," Riyad Capital also wrote in the note.
Heavyweight Saudi Basic Industries Corp (SABIC), added 0.8 percent and Mobily climbed 1 percent. "Rising disposable incomes through employment support programs for new graduates will be partially diverted to voice and data spend," Riyad Capital said.
The all-share index climbed 0.4 percent to its highest close since August 1, after its third gain in four sessions.
Abu Dhabi's index also began the week trading lower, ending 0.5 percent down.
Heavyweight Emirates Telecommunications Co (Etisalat) dropped 0.8 percent while among banking stocks, First Gulf Bank slipped 1.6 percent.
Full-year 2011 earnings are likely to continue to dominate trading activity in the region in the coming week.
"Qatar is also sitting in anticipation of 2011 results before the markets give us a clear indication of the direction it will be taking next," Yasin added.
Qatar's index ended 0.6 percent lower, weighed by Qatar National Bank which fell 1.6 percent. The Gulf state's largest lender is due to report 2011 earnings on Monday.
NBK Capital recommends buying stocks which have dipped recently, adding the trend on the index remains up. "We expect a climb close to 9,140-9,300 points," NBK Capital said in a note.
Banking stocks helped lift Oman's index however, which also bucked the regional trend and ended higher on Sunday. Oman's bank index hit a six-month high after mid-cap lender Bank Sohar reported a 42 percent jump in full year net profit, boosting sentiment for the sector. Bank Muscat gained 0.3 percent.
"The major drivers of market movement would be earnings announcements, specially from prominent sectors such as banking, telecoms, and services," said Joice Mathew at United Securities.
"The banks are expected to post growth in earnings compared to 2011. The chances of industrial sector giving positive surprises are limited, given the increase in cost structure during 2011. Selected companies in services sector are expected to perform better than 2011," he added.