DUBAI Feb 15 Gulf stock markets may rise in
line with a global trend on Wednesday, with Dubai's stock index
continuing to rebound from technical support.
MSCI's broadest index of Asia-Pacific shares outside Japan
is up 0.8 percent after Wall Street hit record
highs overnight on the back of bank stocks. Brent oil is
at $55.68 a barrel, in the centre of the range of the last three
The Dubai index, which added 0.4 percent to 3,653
points on Tuesday, tested and held support on the end-January
low of 3,613 points in early trade, so a continued recovery from
that support would not be surprising. Trading volume spiked when
the index was rising on Tuesday, a positive technical sign.
Emaar Properties' fourth-quarter net profit came
in at the high end of expectations; it reported a profit of 1.61
billion dirhams ($439 million), up from 1.03 billion dirhams in
the same period of 2015, while revenues were up 16 percent.
SICO Bahrain had forecast Emaar would make a quarterly
profit of 1.32 billion dirhams while EFG Hermes had forecast
1.64 billion dirhams. However, the profit was boosted by a
write-back of a 301 million dirham provision for the costs of a
fire at one of Emaar's hotels.
The economic picture appears to be improving in Egypt, with
yields falling as foreign portfolio investors return to Egyptian
fixed income, but the stock market's moves this week suggest
it's vulnerable to profit-taking after its bull run.
The index fell 1.9 percent to 12,504 points on
Tuesday, closing below technical support at its early February
low of 12,578 points; a second straight day of losses would
confirm a break, triggering a double top formed by the highs of
January and February which would point down to around 11,500
(Reporting by Andrew Torchia)