Gulf bourses mixed in slow trade; Egypt resumes decline

Gulf bourses ended mixed in a muted session on Thursday that saw investors little moved by index compiler MSCI's decision to keep frontier market status for the UAE and Qatar, while Egypt's bourse resumed its decline on political woes. This was the fourth time Qatar and UAE failed to obtain emerging market status, an upgrade which could attract renewed interest from long-term investors and global fund managers.
For the UAE, MSCI said it meets all the requirements for promotion but there are specific market "accessibility issues" related to custody, clearing and settlement. MSCI had previously denied both Qatar and the UAE promotions in 2009, 2010 and 2011. Dubai's index slipped 0.4 percent, trading within its tight range of 85 points over the past six weeks.
Bellwether Emaar Properties dropped 1.4 percent and Dubai Financial Market, the only listed Gulf bourse, shed 0.6 percent. These two stocks would have seen funds inflow in case of an emerging market upgrade for the UAE. Abu Dhabi's benchmark climbed 0.8 percent, with telecom operator Etisalat the main support. Shares in the firm, available for trading only to UAE nationals, gained 2.4 percent.
In Qatar, the measure lost 0.6 percent, extending year-to-date declines to 6 percent and making it the worst-performing Gulf market. Losers outnumbered gainers 15 to three. Elsewhere, Egypt's benchmark index resumed its decline after a one-day pause, dropping 1.9 percent on political anxieties after the result announcement of Egypt's presidential election was postponed over allegations of fraud.
The delay frayed nerves as the Muslim Brotherhood, which claims victory, threatened to take to the streets in protest at moves by the ruling generals to deny them power. Thousands of protesters gathered in Tahrir Square for a second night on Wednesday to demand that the officers who pushed Mubarak aside keep their word and hand over power to civilians by July 1. The index, which is at 4,032 points, has declined by 17 percent since the presidential election began in May. In Kuwait, the benchmark ended 0.3 percent lower, falling for the last seven sessions in eight as the country suffers from political upheaval.