MIDEAST STOCKS-Gulf markets fall as investors take profits; Egypt sags – Reuters

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* Banks, petchems weigh on Saudi bourse

* Retail group Alhokair jumps

* UAE, Qatar hit by broad-based selling

* Dubai triggers head & shoulders pattern

* Egpyt weak as international funds sell

By Celine Aswad

DUBAI, May 22 Stock markets in the Gulf fell on
Sunday as investors took profits, taking their cue from a dip in
Brent oil futures at the end of last week, while
concerns over security risks put pressure on Egyptian shares.

Riyadh’s stock index dropped 1.0 percent, weighed
down by the two largest sectors, banks and petrochemicals. Samba
Financial Group and Saudi Basic Industries,
the largest listed stock by market value, fell 2.0 and 1.2
percent respectively.

But some retail industry shares, which had largely been weak
since reporting quarterly results last month, outperformed the
market with Fawaz Alhokair, which owns Saudi rights to
clothing brands such as Mango and Banana Republic, surging 9.6
percent. The stock has rebounded 25.5 percent since late last

An HSBC research note said the company was trading at a
discount to its peers on a forward valuation basis, even after
pricing in some risks to its earnings from a structural slowdown
in the Saudi retail sector.

Dubai’s index fell 0.7 percent to 3,209 points in
thin trade as investors sold across the board. Emaar Properties
and DAMAC Properties dropped 1.1 and 1.8

The index confirmed a break below technical support
on the late March and early May lows of 3,248-3,256 points. That
triggered a bearish head & shoulders pattern formed by the highs
and lows since March and pointing down to the 2,800-point area.

Dana Gas and Etisalat were the main
drags on Abu Dhabi’s index, which lost 1.1 percent.
Shares in the natural gas explorer and the telecoms operator
dropped 1.9 and 2.6 percent.

Blue chips also weighed on Qatar’s stock market with
telecoms group Ooredoo down 3.6 percent. The main
index dropped 1.8 percent.

Cairo’s main index erased early gains and edged
down 0.1 percent in low volume as international funds sold,
bourse data showed.

“The geopolitical risk, after the disappearance of the
EgyptAir flight, is back on high and has quelled some of the
market’s recent gains,” a Cairo-based trader said.

The cause of the EgyptAir crash has not yet been
established. Tourism-related shares were hit on Sunday with
Porto Group Holding, a resort operator, slumping 3.3

But Global Telecom Holding bucked the trend and
added 1.0 percent in its fourth straight session of gains.



* The index dropped 1.0 percent to 6,629 points.


* The index lost 0.7 percent to 3,209 points.


* The index fell 1.1 percent to 4,188 points.


* The index dropped 1.8 percent to 9,638 points.


* The index lost 0.1 percent to 7,495 points.


* The index edged down 0.1 percent to 5,317 points.


* The index was flat at 5,931 points.


* The index edged down 0.03 percent to 1,102 points.

(Editing by Andrew Torchia and Jane Merriman)

MIDEAST STOCKS-Gulf markets fall as investors take profits; Egypt sags – Reuters}