Read Larry Connors' blog – Short Term Trading Strategies
In Saudi Arabia, the Tadawul All-Share Index (TASI) eased 0.4 percent to 5,846 points, with only 2 of the 15 market sectors closing with gains ranging from 0.03 percent for Agriculture & Food Industries, to 2.17 percent for the Insurance sector. On the other hand, sector losses for the other 13 sectors ranged from 0.11 percent for the Cement sector to 0.90 percent for the Industrial Investment. The market breadth remained negative with 34 advancers and 87 decliners, giving an AD ratio of 0.39, the Jeddah-based Financial Transaction House (FTH) said on Wednesday in its market commentary. The stock market turnover also dipped a bit to SR4.1 billion on Wednesday.
Dubai's benchmark fell 4.1 percent to 1,873 points in a rout that saw all 22 active stocks decline, with nine of them losing more than 4 percent.
"Unfortunately, we are now in a situation where there are very little big ticket foreign institutions in the market," said Julian Bruce, EFG-Hermes director of institutional equity sales.
"So with global markets coming off a little bit and oil prices weakening, it does not take much for everyone to stampede for the exit. When a market is dominated by retail investors these sorts of moves are always exaggerated."
Emaar Properties and Arabtec were among Dubai's major losers, falling 6.9 and 6.5 percent respectively. "The market is extremely fragile and so it's difficult to forecast any kind of trend, because stocks are not moving according to fundamentals or technicals," said Ayman El-Saheb, Darahem Financial Brokerage director of operations.
"People are saying we've fallen because US markets are down, but if that's the case why didn't we track their recent upward moves more closely?"
Banks were among the biggest losers regionally, with 11 of the largest lenders dropping by more than 2 percent.
In Kuwait, Zain fell 7.3 percent as investors booked profits from the previous day's 10-month high amid confusion over the company's future.
The Kuwaiti index dropped 0.7 percent to 7,857 points.
On Tuesday, the telecoms operator called an extraordinary meeting for Aug. 31 in what some analysts say could lead to a takeover. Earlier this week, a Kuwaiti newspaper said key shareholders were in talks with an unidentified Asian group to sell more than 40 percent of the firm.
"There has been a lot of speculation around Zain -- initially the talk was that Zain would sell some assets, but this has changed to expectations there will be stake sale in the company itself," said a Kuwait analyst who declined to be named.
Investors expect Zain's shares to rise to any bid price, with the buyer likely to pay a large premium on the current share price, the analyst said. "This is what happened when Qtel (Qatar Telecom) took over Wataniya (National Mobile Telecommunications)," he added. Qtel bought a controlling stake in Wataniya in 2007.
The Omani stock index slipped 0.5 percent to 6,142 points and the Bahraini index dropped 0.5 percent to 1,523 points.
-- With input from agencies
To see more of the Arab News or to subscribe to the newspaper, go to http://www.arabnews.com. Copyright (c) 2009, Arab News, Jeddah, Saudi Arabia Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
