Positive Asia tone to help Gulf markets
Dubai, April 24, 2013
A positive tone in Asian markets is expected to support stocks around the Gulf, where many markets are already in uptrends because of strong first-quarter corporate earnings.
The MSCI index of Asia-Pacific shares outside Japan was up 1.2 per cent, while Brent crude oil held above $100.0 a barrel - enough to allow Gulf investors to focus on good domestic news.
The Dubai market's jump in strong turnover above 2,000 points on Tuesday, for the first time since November 2009, may invite fresh buying of mid-caps from the opening, said experts.
In Abu Dhabi, National Bank of Abu Dhabi's much better-than-expected earnings, announced after the market closed on Tuesday, may boost the stock.
It is already short-term bullish technically; its last close above Dh11 triggered a bullish right triangle formed by the April highs and lows and pointing up to at least the March peak of Dh11.25.
Etisalat may lag any Abu Dhabi rally; it reported, after the close, a near-flat net profit of Dh1.83 billion ($526 million), below analysts' forecasts of around Dh2 billion.
Egypt may be buoyed by fresh speculation that Orascom Construction Industries could soon resolve its tax dispute with Egyptian authorities - a dispute which is seen as blocking the buyout offer for its shares by Amsterdam-listed affiliate OCI NV, and which has hurt sentiment throughout the stock market.
The company said in a brief statement on Tuesday that it was in an advanced stage of negotiations with the tax authorities "and will announce more details within the coming few days."-Reuters