Middle East markets: Oman's bourse hit 17-month low

Most Gulf Arab markets fell on Wednesday as Oman's bourse hit a 17-month low on low investor demand, while Egypt's market ended a seven-day rally on concerns over company earnings. In a ninth straight loss, Oman's index fell 1.4 percent to its lowest close since December 10, 2009 on muted buying interest after lower-than-expected earnings.
"We expect to face a strong support at 5,965 points - this level depends on the movement of the index within the next week," said Osama Ibrahim al Qinna, head of brokerage at Oman Arab Bank. Yet the market will find it difficult to stay above 6,000 point, he added. Bellwether Bank Muscat fell 1.4 percent and Bank Dhofar dropped 4.5 percent.
Egypt's bourse ended a seven-day winning streak, with traders saying recent gains were beginning to look overdone given the murky outlook for corporate earnings in post-revolution Egypt. The benchmark index fell 0.3 percent, having risen by around 3 percent over the past two weeks. Orascom Telecom fell 1.7 percent before its first-quarter figures due out later on Wednesday. The company said it would not pay a dividend for 2010 due to a lack of cashflow from several foreign businesses.
Dubai mortgage lender Tamweel surged 8.3 percent to its highest close since resuming trade after a 30-month hiatus. Most shareholders who held the stock during its suspension have now sold to other investors, said Marwan Shurrab, vice-president at Gulfmena Alternative Investments. Dubai's index ended 0.7 percent higher, rising for a second day since Monday's five-week low. Volumes were concentrated in property stocks. Emaar Properties and Union Properties gained 1.3 and 4.6 percent respectively.
Saudi Arabia's index rose for a second day after the finance minister said the budget would be overspent by 15 percent in 2011 due to higher spending on housing and job-creation. Worried by unrest sweeping the Arab world, the world's top oil exporter has pledged to spend an estimated $130 billion, or around 30 percent of its annual economic output, on housing, jobs, unemployment benefits and other measures.
"The government will probably end up spending more than what they said," said John Sfakianakis, chief economist at Banque Saudi Fransi in Riyadh. The announcement is boosting expectations for corporate results, he added. The building and construction index rose 0.7 percent and the main benchmark gained 0.5 percent.