Gulf Arab markets were mixed on Monday as investors remained cautious ahead of first-quarter earnings and concerns over political unrest weighed. "Markets will only focus back on the fundamentals after political turmoil settles. There are still a lot of resolved issues in a number of countries," said Hashem Montasser, managing partner at Frontlane Capital, a Dubai-based asset management firm.
Abu Dhabi's index slipped with investors locking gains in most large cap stocks. Emirates Telecommunications Corp fell 0.5 percent, while National Bank of Abu Dhabi and First Gulf Bank lost 0.3 and 0.6 percent respectively. Dubai's benchmark slipped as some large cap stocks rose but were outnumbered by losers.
Market bellwether Emaar Properties gained 0.6 percent and Emirates NBD rose 1.2 percent. "I like banks for the 6 to 12 month view. It seems they may be turning the corner and valuations are good," said Robert McKinnon, ASAS Capital chief investment officer.
"As for the other sectors like real estate I'm less optimistic, but the ones with Saudi Arabia exposure would obviously still stand to benefit." Hype from the kingdom's $93 billion social spending plan diminished and investors booked profit. The Saudi benchmark slipped 0.2, taking its losses to 1.7 percent this year.
The petrochemicals index lost 0.4 percent as Brent crude fell $1.02 to $114.57 a barrel at 1222 GMT. "With oil holding firmly above $100, the Saudi petrochemical sector is expected to deliver stellar results this earnings season," said Amro Halwani, a senior trader at Shuaa Capital in Riyadh.
Egypt's main index rose for a second day, correcting some of last week's sharp declines. "In Egypt, there is some quality that is clearly undervalued," said Robert McKinnon, ASAS Capital chief investment officer. "Orascom Telecom is a good example. It was cheap before the sell-off. It is now back to previous levels."
Oman's benchmark retreated, as volumes fell to half of Sunday's trading. Losers outnumbered gainers by three to one. "This being the last trading week of the first quarter, market activity is dividend-oriented," said Kanaga Sunder, Gulf Baader Capital Markets head of research.
"Once the dividend period is over, the investors would start looking at first-quarter numbers. Omani blue chip counters look attractive for the medium term." Qatar's index fell 0.2 after the country announced plans to invest over 218 billion riyals ($60 billion) and a further $65 billion on infrastructure projects, according to its development strategy. Barwa Real Estate rose 1.3 percent. Kuwait's index extended Sunday's gains, with blue chips supporting.