Most Gulf markets retreated on Monday, led by Saudi Arabia's bourse, after petrochemical stocks fell on profit-taking. Saudi Basic Industries Corp fell 0.9 percent and Saudi International Petrochemical Co) lost 1.1 percent, dragging the index 0.8 percent lower.
"The index hit the 6,750 level which is a very strong resistance so this is leading to some strong profit-taking," said Musa Haddad, head trader in National Bank of Abu Dhabi's asset management group. On Monday, Reuters learned that a Saudi stock market committee is moving closer to allowing foreign investors direct market access. "We might see the markets opening up in the first half of 2011 or probably in the second quarter," a source familiar with discussions said.
"It's not a question of if it will happen but when it will happen." Other regional bourses also slid as investors geared up for quarterly earnings announcements, with banking and real estate sectors particularly in focus in the United Arab Emirates. Bellwether Emaar Properties slipped 0.6 percent in Dubai while Abu Dhabi's Aldar Properties lost 2 percent. Dubai's index slipped 0.4 percent and Abu Dhabi's measure lost 0.3 percent.
Fourth-quarter earnings are expected to filter in from this week in Saudi Arabia and Qatar. Oman's benchmark shed 0.5 percent as banks slipped. Bank Muscat, the Gulf state's largest bank by market value, fell 0.9 percent. "The next support level will be at 6,930 points while the resistance would be at 6,980 and 7,000 levels respectively," said an analyst note from Gulf Baader Capital Markets. Markets in Egypt and Bahrain ended almost flat, while Qatar's index declined 0.3 percent as did Kuwait's benchmark.
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