MIDEAST STOCKS-Qatari banks fall after UAE red flag; UAE's Dana Gas, DSI rise – Nasdaq

MIDEAST STOCKS-Qatari banks fall after UAE red flag; UAE's Dana Gas, DSI rise – Nasdaq

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Reuters




* All banks except Commercial Bank down in Doha
    * Market down 8.7 percent since four Arab states cut links
    * Dana Gas soars on hopes for better cash flow
    * DSI's major shareholder sells shares to strategic investor
    * Riyadh down as weak oil prices hurt petchems

    By Celine AswadDUBAI, June 11 (Reuters) - Shares in Qatari banks fell on
Sunday after the United Arab Emirates central bank ordered UAE
banks to be wary of accounts which they hold with six Doha-based
lenders, while Dana Gas and Drake & Scull outperformed in the
UAE.
    As the diplomatic crisis in the region continued, the UAE
told its banks to stop dealing with 59 individuals and 12
entities with alleged links to Qatar, and advised its banks to
conduct "enhanced due diligence" towards the six Qatari lenders.
    Five of the six are listed on the market: Qatar National
Bank <QNBK.QA>, Qatar Islamic Bank <QISB.QA>, Qatar
International Islamic Bank <QIIB.QA>, Masraf Al Rayan <MARK.QA>
and Doha Bank <DOBK.QA>. All of them fell on Sunday with Islamic
lender Masraf Al Rayan, the biggest loser, down 4.0 percent.
    Qatari banks have about 60 billion riyals ($16.5 billion) of
funding in the form of customer and interbank deposits from
other Gulf states, SICO Bahrain estimated; most of this could
eventually pull out if the crisis continues. Commercial Bank of
<COMB.QA> of Qatar was the only lender to rise on Sunday,
gaining 2.7 percent.
    Barwa Real Estate <BRES.QA> dropped 4.1 percent and the
Qatari stock index <.QSI> fell 1.9 percent. Last week, it shed
7.1 percent because of the crisis.
    Meanwhile, the Riyadh index <.TASI> lost 0.8 percent in low
volumes, weighed down by the petrochemical sector as the Brent
oil price <LCOc1> stayed near a one-month low. Ethylene maker
National Petrochemical <2002.SE> lost 3.5 percent to close at
its lowest price since November.
    Shares of companies that might benefit from index compiler
MSCI upgrading Riyadh to emerging market status were relatively
resilient; dairy producer Almarai <2280.SE> rose 0.9 percent to
82.90 riyals, a fresh all-time high. MSCI will announce on June
20 whether it is putting Saudi Arabia on review for a possible
upgrade.
    In Egypt, the index <.EGX30> fell 0.5 percent, easing from
an all-time high as some investors booked profits. The largest
listed lender, Commercial International Bank <COMI.CA>, lost 1.1
percent.

    DANA GAS, DRAKE & SCULL
    In Abu Dhabi, Dana Gas <DANA.AD> soared 13.2 percent and was
the most heavily traded stock. It has rocketed 46 percent this
month on news that it has received a portion of its overdue
payments from Egypt and on hopes for its legal efforts to
recover money from Iraqi Kurdistan.
    A 0.9 percent rise by shares in the second largest bank in
the region by assets after QNB, First Abu Dhabi Bank <FAB.AD>,
also carried the Abu Dhabi index <.ADI> 0.5 percent higher.
    In Dubai, builder Drake & Scull <DSI.DU> rose 1.2 percent to
0.422 dirham; it has risen 5.5 percent since Thursday in
unusually large volumes.
    Former chief executive Khaldoun Tabari has sold his stake in
the company to Tabarak Investment, a source told Zawya, a
Thomson Reuters publication.
    Tabarak Investment's stake stands at around 18 to 20 percent
after the sale, making it the largest shareholder, Zawya said.
In April, DSI said it would sell 500 million dirhams ($136
million) of shares to Tabarak as part of its capital
restructuring programme, subject to regulatory approval.
    The company's business environment still looks tough,
according to analysts.
    "Project tendering seems to be muted in 2017, we do not
expect any foreseeable significant operational improvements.
Overrun costs and doubtful receivables continue to be DSI's
biggest obstacles leading to DSI potentially posting some 250
million dirhams additional losses by the end of this year," a
note by Al Ramz Capital said last week.
    The Dubai stock index <.DFMGI> fell 0.4 percent as 12 shares
rose but 18 declined including builder Arabtec <ARTC.DU>, down
1.6 percent.

    HIGHLIGHTS

    SAUDI ARABIA

    * The index <.TASI> lost 0.8 percent to 6,809 points.

    DUBAI

    * The index <.DFMGI> fell 0.4 percent to 3,388 points.

    ABU DHABI

    * The index <.ADI> added 0.5 percent to 4,499 points.

    QATAR

    * The index <.QSI> lost 1.9 percent to 9,060 points.

    EGYPT

    * The index <.EGX30> fell 0.5 percent to 13,616 points.

    KUWAIT

    * The index <.KWSE> dropped 0.4 percent to 6,755 points.

    BAHRAIN

    * The index <.BAX> was flat at 1,323 points.

    OMAN

    * The index <.MSI> lost 0.4 percent to 5,331 points.

 (Editing by Andrew Torchia and David Evans)
 ((celine.aswad@thomsonreuters.com)(+9715 56224 7653)(Reuters
Messaging: celine.aswad.thomsonreuters.com@reuters.net))

Keywords: MIDEAST STOCKS/






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