Most Gulf Arab markets slid on Sunday, tracking Friday's weakness in global markets as local news flow was muted, while Egypt bucked the trend with real estate stocks supporting. "Generally, global macroeconomic factors have been weak and markets across the region are slightly negative," said Shahid Hameed, Gulf head of asset management at Global Investment House.
US stocks fell on Friday and the euro slid to a six-week low against the dollar as euro zone debt fears came back to the fore, hitting investments in emerging markets.
Telecoms operator Zain weighed on Kuwait's index while other large cap stocks also fell. Zain fell 5.5 percent, as its below-forecast earnings, issued on May 4, continued to hamper the stock, Hameed said. Egypt's benchmark index closed up 1.1 percent as real estate stocks including Palm Hills soared following a decision to release from detention Ibrahim Kamel, a former executive of Egyptian Resort.
Palm Hills and Egyptian Resorts - which have fallen 75 percent and 61 percent this year respectively - jumped 9.6 percent and 9 percent respectively.
UAE and Qatar's markets ended lower as lack of local news flow compelled them to track losses in international markets.
Property stocks weighed on Dubai, with Arabtec and Emaar Properties closing 1.5 and 1.6 percent lower respectively.
Dubai-based mortgage lender Tamweel lost 0.7 percent, falling further after a 30-month suspension.
Dubai's index and Abu Dhabi's benchmark slipped 0.7 percent each.
"There is no volatility, low volumes and no news flow," said Sebastien Henin, portfolio manager at the National Investor.
"In this current environment, you need some additional news flow if you want the market to move to positive territory."
Dana Gas fell 2.9 percent as it faces delayed payments of $148 million for gas from the Egyptian government which could have an impact on its future investments in the country, its CEO told Reuters on Thursday.
Qatar's benchmark fell 0.5 percent, with Qatar National Bank and Industries Qatar falling 1.2 and 0.1 percent respectively.
UAE and Qatar draw closer to a review in June by index compiler MSCI for an emerging market status upgrade.
The market will continue to trade on optimism about a possible upgrade by index compiler MSCI in coming weeks, while tracking regional moves, said Robert Pramberger, acting head of asset management at Doha-based the First Investor.
"My personal view is neutral to positive. Most of the criteria have been fulfilled and there is a good chance Qatar will get included," he added.
Saudi Arabia's petrochemicals and banking stocks weighed on the index, which slipped 0.3 percent, with Saudi Basic Industries Corp falling 0.7 percent and Al-Rajhi Bank ending 0.3 percent lower.
"I would expect a few days of selling pressure, but not major movements," said a Riyadh-based fund manager.
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