Gulf Arab markets were steady on Tuesday as selling pressure sparked by Egypt's political turmoil waned, but traders said this respite may be short-lived, offering a downbeat outlook, especially for UAE stocks. Regional benchmarks have tumbled this week following unrest in the North African state that has left at least 140 people dead.
More than 200,000 Egyptians poured into Tahrir Square in Cairo, hoping to bring an end to 30 years of President Hosni Mubarak's authoritarian rule. Markets in the United Arab Emirates rose on Tuesday to recoup some of their early week losses, but traders offered little hope for a convincing rally.
"Investors are still very tense in their investment decisions and affected by the developments in Egypt," said Mohammed Yasin, CAPM Investment chief investment officer. Dubai's index rose 0.6 percent to 1,544 points, rallying from Monday's 21-week low, but volumes slumped to an 11-day low and were barely a fifth of Sunday's total, indicating little buying interest.
Emaar Properties climbed 1.6 percent to 1,544 points, easing away from Monday's 33-week low, while telecoms operator Du added 2.7 percent. On the Nasdaq Dubai bourse, DP World fell 4.1 percent to a six-week low after the ports operator stopped activity as its Sokhna unit in Egypt.
In Abu Dhabi, Dana Gas dropped 1.6 percent after saying it would evacuate foreign staff if the political crisis in Egypt deepened. On Monday, the firm reported above-forecast fourth-quarter profit. National Bank of Kuwait dropped 2.8 percent to a five-week low after the lender's fourth-quarter profit rose 20 percent, but fell short of analysts' estimates. Saudi Basic Industries Corp and National Industrialisation Co rose 1 and 3 percent respectively as petrochemical stocks led Saudi Arabia's index higher. Saudi volumes hit a eight-month high on Saturday.
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