Following a flat performance in January, Mena equity markets rebounded almost 4.9 per cent last month, according to a report by Rasmala Investment Bank.

The top performer was the Kuwaiti Stock Exchange which gained a respectable 5 per cent MTD. The DFM and ADI also picked up pace, following a statement from Dubai World regarding the possibility of offering its creditors 60 cents on the US dollar guaranteed by the government as part of a deal to repay $22 billion of debt.

The DFM gained a modest 0.2 per cent and the ADI rose by 2.7 per cent on an MTD basis following the Dubai World update in addition to earnings releases from several blue chips. Etisalat reported a 2009 net profit of Dh8.8 billion, an annual increase of 3.5 per cent. Emaar Properties reported a net profit of Dh327 million for the same period. Emirates NBD and the National Bank of Abu Dhabi also reported 2009 net profits of Dh3.8 billion and Dh3 billion respectively.

Tunisia and Egypt markets did not perform as well as in January, with the Tunindex incurring a 0.1 per cent loss while the EGX fell 1.8 per cent. Some highlights in the Egyptian marketplace last month included the IPO of AMER Group, the release of FY09 financial results and most notably the ongoing Algerian government’s dispute with Orascom Telecom Holding (OTH) over the continuation of OTH’s subsidiary’s operations in Algeria.

The Tadawul was up 3 per cent by the end of February, bringing its YTD gains to 5.2 per cent with the majority of stocks ending the month in positive territory. Sabic was up 2.0 per cent, Samba Financial Group climbed 9.4 per cent, Riyadh Bank gained 2.8 per cent and Mobily rose 2.0 per cent. Moody’s Investors Services upgraded Saudi Arabia’s foreign and local current government ratings to 'Aa3' from 'A1'. The outlook on the ratings is stable.

The Kuwaiti Stock Exchange index surged 5.0 per cent in February, compared to its previous flat performance in January, bringing YTD gains to 5.3 per cent. Index heavyweight Zain surged on extraordinary gains of 40.7 per cent. National Bank of Kuwait announced a 2009 net profit of KD265.2 million, a positive catalyst which pushed the stock higher to record a monthly gain of 20.8 per cent.

Qatar’s DSM rebounded in February to record a gain of 4.8 per cent. Earnings announcements and Qtel’s latest news update of potential investments in Iraq and Algeria contributed to this growth. Qatar International Islamic Bank reported a FY09 net profit of QR511.3 million and customer deposits increase of 5.4 per cent. Qatar Islamic Bank’s stock accumulated MTD gains of 3.8 per cent, while Al Khaliji Commercial Bank posted MTD gains of 11.84 per cent.

Oman’s MSM index ended February with gains of 2.4 per cent, bringing YTD gains to 5.0 per cent. Oman Telecom reported a 5.0 per cent growth in 2009 net profits. Four Omani Funds including the Ministry of Defence Pension Fund, Civil Services Fund, ROP Pension Fund  and the Public Authority for Social Insurance expressed their interest to acquire a 15.0 per cent stake in Bank Muscat, which is owned by UAE’s debt-laden conglomerate, Dubai Holding, the report said.-TradeArabia News Service