Most Middle East markets fall as Bahrain imposes curfew

Most Middle East markets extended losses on Wednesday as unrest intensified in Bahrain and the kingdom's government introduced a curfew on the second day of martial law. "These are very much top-down markets that are retail dominated and so when we have major events, sentiment takes prevalence," says Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.
Saudi, Dubai up, but gains may prove short-lived "The trend is still bearish. Uncertainty is still great and so any rebound will probably be short-lived and would be more of a chance to sell." Bahraini forces backed by helicopters launched a crackdown on protesters, clearing hundreds from a camp that had become the symbol of an uprising by the Shia Muslim majority.
Bahrain's bourse was closed on Wednesday and an exchange official told Reuters no date had been set on when it would resume trade. Qatar's index fell for a third session as losers outnumbered gainers 17 to three. Global foreign investors remain focused on fundamentals, but with risk premiums rising along with political unrest in the region, they are shifting portfolios to more stable markets, said Robert Pramberger, acting head of asset management at Doha's The First Investor.
Saudi Arabia's index rose 1 percent, recouping some of its losses from a two-day, 4.7 percent decline as first-quarter results season nears. Higher oil prices will boost petrochemical producers' margins. "A lot of companies will benefit from [oil prices] and banks are at the end of provisioning cycle so earnings will be much better," said a Riyadh-based fund manager on condition of anonymity.
UAE's markets were mixed, with Dubai taking support from Asian markets as Japan's Nikkei index recovered some of its losses from Tuesday's fall, its largest since 1987. Arabtec climbed 2.2 percent and Emaar Properties rose 1.5 percent. Kuwait's Zain dropped 7 percent as trading resumed following a two-day suspension after it accepted a joint bid for its quarter-stake in unit Zain Saudi. Other Kuwait blue chips also slid, with the index dropping to within 120 points of a six-year low hit on March 7. Oman's index fell to a two-week low. Telecoms operator Nawras, once a top Oman pick for international funds, dropped 1.5 percent and National Bank of Oman lost 1.3 percent.