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Dubai hardest hit among Arab marts |
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10/14/2006 8:18:54 AM |
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DUBAI: Mobile Telecommunications Co (MTC), Kuwait’s second-largest company by market value, powered to a record high yesterday as investors bet on strong profit growth among Kuwaiti blue chips.
Elsewhere in the Gulf, Saudi shares finished the morning session flat after several banks posted lower-than-expected earnings growth.
Dubai shares were the hardest hit, losing almost 1% as Emaar Properties, the UAE’s largest listed company, edged down for the first day this week.
Abu Dhabi’s bourse climbed slightly, while Oman and Bahrain ended flat.
MTC chief executive Saad al-Barrak said on Monday he expected the company to double its profit this year to a record 375mn dinars ($1.30bn).
MTC’s shares, which are up 15% since October 1, closed 3.07% higher at 3.360 dinars, their highest close on record according to Reuters data going back two years.
Another big mover in Kuwait was National Industries Group, the market’s fifth-largest company, which surged 4.55% to 1.380 dinars, its highest close since March 4.
"Blue chips in Kuwait have been neglected and are trading at extremely discounted valuations," said Shakeel Sarwar, head of asset management at Bahrain-based SICO investment bank.
Kuwait’s largest companies are trading at an average 12 times 2006 earnings, among the cheapest in the Gulf, he said. "This is what will drive regional money into Kuwaiti stocks."
Saudi Arabia’s index ended the morning session flat at 10,957.86 points, as most banking stocks were unchanged or fell.
Saudi British Bank and Banque Saudi Fransi were unchanged a day after reporting profits that came in below analysts’ expectations.
Riyad Bank edged down 0.34%, its third day in the red. The bank reported a 2.5% drop in third quarter net profit on October 5. – Reuters |
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