Most Gulf markets slip

Most Gulf markets edged down on Tuesday with investors cutting risk as new worries emerged in Europe after Spain's borrowing costs shot up, but low trading volumes limited losses. Saudi Arabia's index lost 0.3 percent, erasing early-session gains, to end at 7,033 points, taking losses this month to 7 percent.
"Issues in Europe and seasonal effects of the summer and then Ramadan will slow down the market," said Faisal Al-Othman, portfolio manager at Riyadh-based Arab National Bank. "We had a good performance earlier this year and it's time to retrace downwards to 6,800 levels, which is a strong support. The market will stay within a range of 6,800 and 7,200 points over the coming months." The benchmark topped 7,900 points in early April, its highest level in three-and-a-half-years as retail money poured into the market.
The heavyweight sectors of petrochemicals and banks ended lower with the respective benchmarks down 0.3 and 0.6 percent. Growing doubts about Spain's plan to recapitalise its banks and obtain finance for its struggling regional governments unnerved investors globally, including the Middle East.
Dubai's bourse fell for a third session in five, down 0.1 percent and Abu Dhabi's index closed at a four-month trough as investors cut risk. Dubai's heavyweights dragged the market down with Emirates NBD and Emaar Properties closing 1.1 and 1 percent lower respectively.
"Dubai's index is in a support area that could hold for a rally. But, there's no signal for it yet," said Bruce Powers, head of research and analysis at Trust Securities. Abu Dhabi's index eased 0.06 percent to its lowest close since January 31. In Qatar, stocks slipped 0.4 percent as profit taking pushed them off Monday's two-week closing high.
Qatar National Bank dipped 0.5 percent and Barwa Real Estate fell 2.2 percent. Elsewhere, Kuwait's market fell for a 10th consecutive session, down 0.1 percent as political instability dampened sentiment. Nayef al-Hajraf was appointed as the country's acting finance minister, after his predecessor Mustapha al-Shamali quit amid allegations of financial irregularities in his department.
Egypt's benchmark share index dropped 1.1 percent to a six-week low after an arson attack on the headquarters of one of the country's two presidential candidates fuelled jitters that political uncertainty of the last year may go on for many more months. Egypt's share index closed at 4,684 points, its lowest since April 18. It has lost 5.8 percent since the end of voting in the first round of the presidential election, which pushed the campaign's two most divisive figure into a run-off vote on June 16 and 17.
Orascom Construction Industries (OCI) regained ground after early losses to end the day little changed. The company announced in mid-session it would earn $605 million from the sale of its 16.8 percent stake in US grain merchant Gavilon to Japan's Marubeni.