Gulf markets steady; Dubai bourse slips

Gulf markets were steady on Wednesday as investors awaited quarterly results, while selling pressure on Dubai's small- and mid-cap stocks dragged the bourse lower. Mortgage lender Tamweel dropped 9.5 percent, cutting year-to-date gains to 105.6 percent, after it posted a 33 percent fall in first-quarter profit. Its earnings were hit by one-time litigation provisions.
Air Arabia fell 9.4 percent after going ex-dividend and Dubai's index slipped 0.4 percent to 1,643 points, its lowest close since March 20. The market holds above a support level at 1,637 points, trading sideways as investors await more first-quarter earnings.
"So far, a lot of investors have been positioning for operating strength from companies in first-quarter and now it's delivery time," said Ibrahim Masood, senior investment officer at Mashreq bank.
"The results will determine where we go from here, but I wouldn't be surprised to see us continue sideways in muted trade."
Abu Dhabi's Aldar Properties and Sorouh Real Estate gained 1.8 and 0.9 percent respectively. Abu Dhabi Commercial Bank rose 1.3 percent. The emirate's index ended 0.3 percent higher at 2,513 points, extending gains since Monday's eight-week closing low.
"The next significant support is around 2,468 and it looks like the index will eventually reach that level, at a minimum," said Bruce Powers, head of research and analysis at Trust Securities.
"In the meantime, a bounce could come at any time but there's nothing indicating that at this point. Resistance to watch is around 2535 and 2,550," he added.
In Saudi Arabia, investors booked intra-day gains ahead of the weekend in trading focused in small and mid-cap stocks. The index ended near-flat at 7,514 points, following a rebound on Tuesday from a seven-week trough.
"The index will test the resistance at 7,600 level after rising from a strong support near 7,300," said Mateb Al Ghanim, portfolio manager at Amlakuna Investment Group.
Zain Saudi rose 4.9 percent, accounting for more than a quarter turnover. The telecoms operator, a recent target of retail investors, said it was finalising the refinancing of a $2.6 billion facility due in July after it posted another quarterly loss.
In Qatar, banks slipped, but the index ended near-flat.
Masraf Al Rayan and Qatar Commercial Bank declined 0.6 and 0.5 percent respectively. Doha Bank fell 1.6 percent.
"Last year, Qatar's banks were some of the best performing but they are lagging now due to a lack of catalysts," said Ali Adou, portfolio manager at The National Investor.
"The government hasn't started awarding the major World Cup 2022 projects yet, which will be a positive for the banking sector in general as lending will grow."
In Muscat, Ominvest jumped 5.6 percent to a six-month high after saying its unit Oman Arab Bank will sell a 25 percent stake in an initial public offering.
The index finished 0.4 percent higher, up for a sixth session in seven.