Most Gulf Arab markets fell on Thursday as investors booked profits in UAE and Qatar, while Renaissance weighed on Oman's bourse for a second day. Dubai's blue chips ended the benchmark's two-session gains. Developer Emaar Properties fell 0.6 percent and contractor Arabtec slid 2.1 percent. Drake & Scull International fell 0.9 percent after gaining 2.9 percent on Wednesday, hours before posting a forecast-beating 21 percent rise in net profit.
The three stocks accounted for a quarter of the total shares traded on the bourse. The index shed 0.7 percent. Analysts forecast volumes to drop ahead of the quieter summer season, with a potential MSCI upgrade to emerging market status providing only a temporary relief. "There's not a whole lot of liquidity - being included in the MSCI is less than a 50 percent chance," said Robert McKinnon, ASAS Capital chief investment officer.
"Even if they get included, it will be more of locals following the trend for about two week before the market goes back to the summer doldrums," he added. In Egypt, Commercial International Bank jumped 2.9 percent despite posting disappointing quarterly earnings, helping to boost the index. Analysts said that despite the lower profit, CIB's balance sheet growth was robust and its overall provisions coverage, at 148 percent, was solid. "Core operations figures were not as bad as expected," said one analyst.
Qatar's index ended a four-day winning streak as investors booked profits across most sectors. The benchmark fell 0.6 percent, after rising 3.6 percent this week. Heavyweight Industries Qatar fell 1 percent and Qatar National Bank shed 0.7 percent. "There's not a lot of foreign interest, people are very sceptical (about the prospects for an MSCI upgrade)," said a Doha-based trader speaking on condition of anonymity.
Kuwait's index slumped to a, eight-session after shedding 0.1 percent. Volumes were concentrated in small cap stocks, signalling a market driven by day-traders. Heavyweight Kuwait Finance House tumbled 1.9 percent. Property stocks in Abu Dhabi dragged the index down 0.1 percent with Aldar Properties and Sorouh Real Estate falling 2 and 2.1 percent respectively. Oman's Renaissance Services extended losses after first-quarter net profit slumped. The stock slipped 0.6 percent in high activity. The benchmark slid 0.07 percent to an 11-week low.
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