GCC today

what happened today in markets,

Yesterday it was bombing of Iran and today some foiled attack in Saudi Arabia.


DFM bounced from a oversold position only to loose at the end of the day all its gains.

DIB and ENBD have been playing spoilsport,

DFM had a Citibank research report helping it out, otherwise we would have slid further,

Oman had banks playing spoilsport keeping the Index down.
ONIC after split and bonus opened 9+% up only to close lower with profit taking.

Al Anwar too had bonus adjustment done today.

Sohar IPO opens on 2 Jul 08, the past power generation issues have been well received.
Sohar Power is larger than the listed entities in terms of generation capacity.
Is definitely worth investing.

Suspect Nation

Since Tony Blair's New Labour government came to power in 1997, the UK civil liberties landscape has changed dramatically. ASBOs were introduced by Section 1 of the Crime and Disorder Act 1998 and first used in 1999. The right to remain silent is no longer universal. Our right to privacy, free from interception of communications has been severely curtailed. The ability to travel without surveillance (or those details of our journeys being retained) has disappeared. Indeed, as Henry Porter (the Observer journalist famous for his recent email clash with Tony Blair over the paring down of civil liberties) reveals in this unsettling film, our movements are being watched, and recorded, more than ever before.

Comm Bank Intl of UAE revises stock dividend rate

Commercial Bank International has revised the Cash Dividend of 20% and Stock Dividend of 20% announced earlier to Stock Dividend of 60% in the AGM held on 18th March 2006.

The doc. filed with Capital Authority is attached.

http://www.sca.ae/english/files/CBI2006-03-19.pdf

News about Gulf/UAE

Ithmar IPO oversubscribed more than 3 times raising US$900 million.
http://www.tradearabia.com/tanews/newsdetails_snBANK_article102287.html

Dubai Islamic Bank Rights issue last date extended.
http://www.tradearabia.com/tanews/newsdetails_snBANK_article102245.html

UAE Capital Authorities plans ceiling on IPO allotment.
http://www.zawya.com/Story.cfm/sidZAWYA20060319041354/SecMarkets/pagEquities/lok041300060319

UAE Markets on 19th March

EMIRATES SECURITIES MARKET
As on 19th Mar 2006


There was a fall in number of transactions. After the large volumes recorded yesterday today’s trading was subdued. DFM slid from the peak of 701.44 to close at 654.94.

Dubai Islamic Bank has extended the last date for applying to its rights issue till April 10.

Market Cap
Market Cap in UAE both exchanges included stood at AED 693 billion 0.11% lower than that of 18th Mar.


Outlook
Saudi Arabian markets are setting the direction for markets in Middle East including UAE. Government interference only props the market temporarily. Saudi Arabia TASI could slide till 13000 though the fall will not be straight. Trading opportunities would arise. This fall could create weakness in UAE Markets going forward.

Company Name Closing Price Change Ratio

• Dubai Islamic Bank 14.5 0.35%
• Abu Dhabi Islamic Bank 104 -1.89%
• Sharjah Islamic Bank 3.8 2.98%
• Abu Dhabi Com Bank 8.97 0.00%
• First Gulf Bank 15.55 0.65%

Company Name Closing Price Change Ratio

• Emaar Properties 16.6 -1.78%
• Amlak Finance 7.08 1.14%
• Arab Logistics 3.83 6.39%
• Dubai Investment 7.69 4.77%
• TABREED 3.98 1.27%

Company Name Closing Price Change Ratio

• DANA Gas 3.00 6.76%
• National Energy-TAQA 3.55 -0.84%
• Gulf Cement Co. 13.9 6.51%
• RAK Cement 2.95 -0.67%
• AGTHIA 2.24 -4.68%

"Bloodbath" in UAE Stock Markets

The UAE Markets (DFM and Abu Dhabi) fell 3% plus today. Was this a reaction to fundamental factors like high proportion of one time non operating income or factors like fall in liquidity?

Or it is reaction to other Markets like Saudi or Kuwait stock markets?

Saudi Market has seen a steep fall in TASI. It was accompanied by huge selling and no buyers on almost all counters. But that has not been the case in UAE. We saw two IPOs opening at the same time drawing the liquidity. The refunds of IPOS would be 21 days from the close of issue. Till then liquidity position would be tight.

Another probable reason could be margin calls on brokers/investors forcing them to sell top traded stocks which also happen to be widely held.

Also the real estate is attracting capital which is withdrawn from stock markets.

Sitting on cash to enter the markets at each level lower than the earlier levels is a good option.
The bounce back would be in stocks which have seen steep fall since the beginning of this year.
Entering illiquid counters is also not advisable so top traded counters in banks, industry and services are attractive.

Contrarian views are welcome.