UAE markets end mixed as retail investors dominated trade on Thursday, while Qatar's benchmark closes higher for a first day in three. Dubai's index climbed 0.3 percent, taking its 2012 gains to 23 percent. The benchmark traded within a 50-point range this week, volatility easing as investors await new catalysts to lift the market.
Some small-cap stocks still made large swings, however. National Central Cooling (Tabreed) jumped 8.4 percent, mortgage lender Tamweel rose 3.3 percent and Deyaar Development added 2.3 percent.
"The UAE was trading at very depressed levels compared to its peers - corporations are expected to deliver better results than last year and that's why the interest in UAE has increased," said Ali Adou Portfolio Manager at The National Investor. Abu Dhabi's benchmark slipped 1 percent, down for a fifth session in six. The bourse hit a seven-month high on March 4.
National Bank of Abu Dhabi fell 5.1 percent, Abu Dhabi Commercial Bank dipped 0.7 percent and First Gulf Bank fell 0.4 percent. In Qatar, the index ended 0.2 percent higher, moving in a sideways trend. Elsewhere, Oman's bourse rallied as investors picked up shares in investment firms, which are likely to see the value of their local equity portfolios rise along with the wider market.
The index finished 0.6 percent higher in its third straight gain. It is up 7.1 percent since the end of January. Transgulf Investment Holding added 3.6 percent and Oman Investment and Finance climbed 1.9 percent. "Investment firms would gain further when the market as a whole improves," said Harikumar Varma, assistant vice-president of asset management at Gulf Baader Capital Markets.
"I think the mood is partially regional, which is basically a derivative of oil and partly on government spending. The market has another 8 to 10 percent upside in the coming weeks." Kuwait's bourse eased 0.09 percent, slipping from Wednesday's nine-month closing high.
Small-caps dominated trading volumes, signalling high retail investor participation. Al Deera Holding fell 4.2 percent, Gulf Finance House ended flat and Hits Telecom Holding dipped 1.9 percent and are the three most traded stocks. "Kuwait has lagged most Gulf markets this year, but as the rally in other markets weakens Kuwait is seen by a lot of regional fund managers as a good place to park their cash after booking gains elsewhere," said a Kuwait trader who asked not to be identified. "Kuwait should consolidate around current levels for a while longer before it rallies again.
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