Most Gulf Arab markets gave back gains on Tuesday as investors await local catalysts and petrochemical stocks reacted to an oil price decline. Petrochemical stocks headed losses on the Saudi bourse, with Saudi Basic Industries Corp and Saudi Arabian Fertilisers Co falling 0.9 and 0.6 percent respectively. The petrochemicals index ended down 0.7 percent, but analysts said it was likely to bounce back on the back of strong first-quarter earnings and high oil prices.
"All signs are positive except the decline in oil prices," said Hesham Tuffaha, from Bakheet Investment Group. "But I expect oil to keep above $100 a barrel, so most likely the market will increase gains but that will be in coming weeks," Tuffaha added. Oil dipped below $113 a barrel on Tuesday as the dollar rose from a three-year low. Crude hit a 31-month peak on Friday.
Saudi Arabia's main benchmark fell 0.4 percent. Egypt's main index shed 0.3 percent in thin trade, with political and economic uncertainty still weighing on investor confidence. "There is no catalyst. There are no buyers in the market that would take it to a higher level," said Mohammed Radwan, head of equities at Pharos Securities. Real estate firm Palm Hills shed 5.6 percent after a northern provincial government scraped a sale of land to the firm.
Egypt's biggest property developer, Talaat Moustafa Group, fell 6.8 percent. Blue chips weighed on Muscat's index and Ominvest gave back gains, falling 0.6 percent. It had surged on Monday after a newspaper said discussions to float a bank unit were at an advanced stage.
"Low bank deposit interest rates are encouraging the investors to invest more in bonds," said Osama Ibrahim al Qinna, head of brokerage at Oman Arab Bank. The benchmark ended 0.3 percent lower, easing from Monday's two-week high. Kuwait's index fell while volumes remain low amid local political uncertainty following the resignation of the country's cabinet in April.
The benchmark closed 0.2 percent lower, taking its 2011 losses to 6.5 percent. It hit a 10-week intraday high on Monday. "Market will be sustainable around this level for a while until the government is formed," said a Kuwait-based trader. National Mobile Telecommunications Co fell 1 percent, but rival Zain gained 1.7 percent.
UAE markets ended mixed with blue chips lifting Dubai's index from Monday's 18-day low. Emaar Properties and Emirates NBD rose 0.6 and 0.2 percent respectively. Abu Dhabi's index slipped 0.1 percent to a three-week low, with banks weighing. National Bank of Abu Dhabi and Abu Dhabi Commercial Bank fell 0.4 and 1.1 percent respectively.