Mkts seen higher on upbeat sentiment

Mkts seen higher on upbeat sentiment

All Gulf markets will trade on Wednesday.

September 15, 2010 10:50 by Reuters

Investors have been eagerly awaiting for reaction to Oman’s first initial public offering this year, that of telecoms company Nawras, which opens for subscription on Wednesday.

A statement from the company said that Nawras will be listed on Oman’s exchange under the “nwrs” ticker, expected on October 27. Subscription is open until October 14.

“The company might offer value not only through its pricing but also through its growth prospects within fixed line user acquisition and margin enhancement through the international gateway technology,” ING Investment’s portfolio manager Yazan Abdeen told on September 1.

“That all off course is subject to competition especially if a third player showed up to the party.”

All Gulf markets will trade on Wednesday, after the extended holiday period.

Qatar’s exchange will re-open today following the Eid al-Fitr holidays, with further gains expected at the open.

“Qatar should edge higher – it’s a market that usually sees regular profit taking, but the trend is up and Qatar offers a lot of value, quite broad sectors and attractive prices,” says Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

Likewise, Saudi Arabia’s index could extend gains from Tuesday, when it ended the session at its highest finish in 12 weeks.

Some Saudi banks might gain further after Goldman Sachs published a report earlier this week saying that the Saudi government’s stimulus program is likely to result in strong economic growth and robust corporate credit demand, benefiting the country’s banking sector.

Regional bourses are also likely to be boosted by global improvement in sentiment, with Asian stocks edging higher.

Japan intervened in foreign exchange markets for the first time in six years on Wednesday to stem economic damage from the surging yen, pushing its currency sharply lower and lifting Tokyo stocks by almost 3 percent.