Dubai: Stock markets in the Middle East ended their respective sessions mixed on Saturday. With investors interest slowing during Ramadan, trading values and volumes were mostly low. The markets were also tracking weakness in global markets as stocks in the US suffered their worst week in a month and a half, while crude oil prices also ended lower for a fourth straight session on Friday on mounting concerns about a slowdown in economic growth.
Oman's Galfar Engineering rises after its quarterly results beat expectations but can't prevent the broader index from declining for a third straight session to its lowest point in August. Galfar gains 1.6 per cent, while the index falls 0.2 per cent to 6,301 points. The engineering company posted a 37-per cent drop in second-quarter net profit but beat analyst forecasts.
"As per its strategic expansion plans, the company is in the verge of forming a local company Galfar Wazen General Contracting Co in Libya," according to research from Gulf Baader Capital Markets.
"This company will be primarily concentrating in oil and gas sectors. We believe this could a positive move looking at the kind of oil and gas projects pipeline in Libya," it adds. Qatar's index fell 0.6 pre cent to 7,020 points, led by Barwa Real Estate and heavyweight Industries Qatar. Barwa sheds 1.6 per cent despite posting an increase in second-quarter net profit.
Saudi Arabia's index recovered initial losses, but some traders expect the index to test the 6,000 points support level. The benchmark rose 0.2 per cent to 6,132 points, recovering slightly after declining for the previous five sessions.
"The Saudi index should fall to trade between 5,750 and 6,000 points in the medium term," says Yousuf Kassantini, an independent financial analyst. Nevertheless, he says the index will break 7,000 before year-end and could even reach 8,000.
"The market will be supported by company results. Saudi Arabia doesn't have debt, but has a huge surplus, oil prices are okay and we're expecting big government spending," adds Kassantini.
"Foreign investment is increasing and the economy is healthy. Markets reflect the underlying economy."
Qatar stocks fell, led by Barwa Real Estate, tracking weakness in global markets. The index fell 0.3 percent 7,041 points. Barwa declined 1 per cent. "While further pull back is visible, the overall bounce remains in place," Shuaa Securities says.
Muscat's index retreated 0.1 per cent to 6,309 points.
Cairo-listed Orascom Telecom will be under scrutiny after sources told Reuters Russian-Ukranian operator Vimpelcom is in talks to buy a 51 per cent in the Egyptian firm. "It all depends on what happens with these rumours," says Mohammad Radwan of Pharos Securities.
