JEDDAH – Gulf stock markets fell in lackluster trade Tuesday as investors booked profits ahead of the year-end, and also the neighboring Egypt's bourse due to a weak outlook for economic policy. In Saudi Arabia, National Industrialisation (Tasnee) jumped 4.9 percent after the petrochemical firm's board proposed a cash dividend of SR2 per share, for a total of SR1.3 billion, according to a bourse statement. The Kingdom's stock benchmark Tadawul All Share Index slipped 0.2 percent, trading within a range of 50 points since Dec. 17, as investors awaited fresh cues to take positions. One cue could be the 2013 state budget, expected to be announced within the next week or two. Large-caps were mixed, with Saudi Basic Industries Corp (SABIC) slipping 0.6 percent; Al Rajhi Bank gained 0.8 percent. Analysts and investors are bullish on the top two telecom operators, Saudi Telecom (STC) and Etihad Etisalat (Mobily). Shares in STC climbed 1.1 percent, while Mobily slipped 0.3 percent. “Valuations remain attractive with the sector trading at 8.6 times 2013 estimate price-to-earnings ratio, 10 percent below regional peers,” NCB Capital said in a note. “A relatively stronger macro environment in the Kingdom is likely to support faster growth in the sector than in other regional countries. Although the outlook for STC and Mobily remains positive, we prefer the latter due to strong fundamentals, good dividends and its Saudi focused business.” Elsewhere, Kuwait's bourse recorded its largest one-day drop since Dec. 4, as retail investors dominated trade. The index fell 0.6 percent. The market had rallied 6.2 percent from early November till Dec. 23, as bargain hunters and support from government buying lifted the market from an eight-year nadir touched on Nov. 4. Dubai index fell 0.9 percent to 1,594 points. Abu Dhabi index declined 0.4 percent to 2,629 points. Qatar index slipped 0.1 percent to 8,381 points. Oman index eased 0.1 percent to 5,676 points. Bahrain index declined 0.6 percent to 1,039 points. The Kuwaiti market is totally driven by retails, with no fundamental reasons (for a sell-off). – SG/Reuters
