Dubai. (Reuters) - Most Middle East markets fell on Sunday, tracking end-of-week declines in global stocks and oil prices in the absence of regional catalysts.
Egypt was the biggest casualty, falling 2.2 percent. Cairo, Abu Dhabi and Qatar made their largest losses in two weeks as negative sentiment spurred investors to book gains from recent highs. Speculators bought Zain (ZAIN.KW), lifting Kuwait's index, while Bahrain rose and Saudi Arabia ended flat.
"Results are out and there are no triggers to move the market higher in the short term, so regional markets are likely to take their cues from international markets and oil prices," said Shakeel Sarwar, Sico investment bank head of asset management. "In the medium to long term, valuations look good."
Oil fell to a seven-week low on Friday as the precarious finances of some euro-zone economies weighed. Similar sentiment also dragged world stocks into the red. <O/R> <MKTS/GLOB>
"Oil has been trading in a range between $70 and $80 since the third quarter and it's now at the bottom of this range," said Ali Khan, head of brokerage at Arqaam Capital.
A break below this psychological level would weigh on regional stocks and petrochemicals in particular, analysts say.
Dubai's index .DFMGI fell 2 percent, with Emirates NBD ENBD.DU and Emaar Properties EMAR.DU falling 2.8 and 3.3 percent respectively. Shuaa Capital SHUA.DU dropped 7.5 percent after posting a quarterly loss.
"Dubai reacts more in both directions, so that's why there's a bigger move in Dubai than Abu Dhabi," said Arqaam's Khan.
Abu Dhabi's index .ADI dropped 0.9 percent.
"I believe the 'blind selling' is not justified on local fundamentals, it is rather sentiment correlated to US markets - we are a market dominated with daily speculators who adopt the 'hit and run' strategy," said Mohammed Yasin, Shuaa Securities chief executive. "Until more long-term liquidity finds its way to our stock markets, (they) will be hostage to daily traders."
Industries Qatar IQCD.QA, sensitive to oil prices, fell 2.7 percent and Commercial Bank of Qatar COMB.QA and Barwa Real Estate BRES.QA lost 3.4 and 1.8 percent respectively.
"Qatar real estate is over-supplied, especially in commercial property, and prices are quite high compared to the rest of the region," said Sico's Sarwar.
"Some of the projects are highly leveraged and people are questioning whether these are viable in the current environment.
"Banks are heavily exposed to the property market. Real estate is the main factor holding Qatar's market back, despite the country's high economic growth rates."
Doha's index .QSI is down this year, having gained 1 percent in 2009 to underperform Saudi Arabia .TASI, which rose 27 percent. Qatar's gross domestic product is forecast to rise 16.1 percent. GULFPOLL1
Zain surged 5.7 percent to 930 fils, helping Kuwait's index .KWSE rise for a fourth day.
"It's all about Zain - some investors saw it as cheap at these prices, but it's speculation," said Essa al-Hasawi, a dealer at Noor Financial Investment Co in Kuwait.
"Zain leads the market and I think the market will be good this week if Zain holds above 900 fils," he added.
SUNDAY'S HIGHLIGHTS
SAUDI ARABIA
* The measure .TASI edged up 0.01 percent to 6,216 points.
DUBAI
* The index .DFMGI fell 2 percent to 1,631 points.
ABU DHABI
* The benchmark .ADI dropped 0.9 percent to 2,682 points.
EGYPT
* The index .EGX30 fell 2.2 percent to 6,827 points.
* Talaat Moustafa Group (TMGH.CA) dropped 4 percent.
OMAN
* The index .MSI dropped 0.9 percent to 6,473 points.
KUWAIT
* The index .KWSE rose 0.5 percent to 7,102 points.
QATAR
* The measure .QSI fell 1.5 percent to 6,729 points.
BAHRAIN
* The index .BAX rose 1.2 percent to 1,507 points.
Reported by Cristina Gallardo, write to cristina.gallardo@ordons.com
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