Gulf Mkts Gloomy As Global Sentiment Sours

Gulf Mkts Gloomy As Global Sentiment Sours

In the United Arab Emirates, the central bank has expanded its large exposure limit rules for commercial banks, introducing new caps for loans made to local governments and their entities in the first such change in nearly two decades.

April 8, 2012 10:31 by kippreport

Saudi Arabia’s index fell 0.4 percent on Saturday following disappointing U.S. employment figures and the kingdom’s bourse often sets the early-week trend on neighbouring markets.

Yanbu Cement will be in focus after it reported a first-quarter net profit of 145 million riyals ($38.66 million), up 43.6 percent rise from a year earlier.

Saudi Basic Industries Corp (SABIC), the world’s largest chemical producer by market value, said it was planning to invest $100 million to build a technology research and development centre in China.

Dubai’s index is likely to again be muted as investors wait for first-quarter earnings.

“In the UAE, I don’t see a lot of upside unless companies start giving great results,” says Ali Adou Portfolio Manager at The National Investor. “But much of these results are already priced in. Unless the numbers are extremely surprising, we won’t see much upside.”

Elsewhere, Kuwait Finance & Investment Co. (KFIC) may gain after it said holders of its 21.5 million-dinar ($77.24 million) bonds have approved the company’s proposed debt restructuring plan.

U.S. stock futures fell more than 1 percent on Friday and treasuries prices rallied after U.S. payrolls grew by 120,000 in March, far below the expected gain of 203,000 jobs.

(Reporting by Nadia Saleem; Editing by Matt Smith)