09/02/2011
Middle East markets muted as rebound stalls; eyes on Egypt
Middle East markets were mixed on Tuesday as a regional rebound faltered, with little momentum to push stocks higher after they recovered most of their late-January losses that were sparked by unrest in Egypt.
"Egypt is a sentiment dampener for the region, but the fundamental impact is very limited," says Shahid Hameed, Global Investment House's head of asset management for the Gulf.
Saudi Arabia's index (TASI) fell for a first session in six, easing from Monday's 12-day high. The sector activity for the day was mostly negative with 10 out of 15 closing with lose ranging from 0.02 percent by the Transport sector to 0.56 percent by the Petrochemical Industries sector.
Saudi Basic Industries Corp dropped 1.4 percent and Banque Saudi Fransi lost 1.8 percent.
Saudi Arabia will the top destination for this money necause of its market depth, liquidity and strong economic fundamentals, Haddad said. Egypt's bourse is expected to reopen on Sunday.
Saudi's economy is forecast to grow 4.3 percent in 2011, only bettered by Qatar and Oman in the Gulf.
"The market is moving sideways," said Hesham Tuffaha, Bakheet Investment Group head of research. "Egypt has had a negative impact on sentiment and many investors are now relying on foreigners to drive the market."Egypt has a plan for the peaceful transfer of power, the vice president said on Tuesday, as protesters called more demonstrations to show their campaign to oust President Hosni Mubarak remains potent.
Qatar's index rose 0.7 percent to a 12-day high...Dubai builder Arabtec climbed 0.6 percent after winning a contract worth $245 million in Kuwait, but the emirate's index ended flat.
