JEDDAH: Most Middle East markets fell Wednesday, bucking gains on emerging and global bourses as local investors waited for international funds to return to the region. Saudi bluechips weighed on the country's index TASI, with Middle East markets largely unmoved by gains on emerging and developed markets. Saudi Basic Industries Corp (SABIC) and Samba Financial Group each fell 0.8 percent, while Saudi Telecom Co dropped 0.5 percent. These declines helped push the Tadawul All Share Index (TASI) down 0.5 percent to 6,344 points, despite crude hitting a six-month high and world stocks also gaining ahead of a US Federal Reserve meeting that is expected to herald a new bout of quantitative easing. “We have underperformed for the past few weeks and tend to be correlated more to the downside for both oil and global markets,” said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading. “It seems local investors are waiting for internationals to come in and lead the market up. Developed and emerging markets are doing well, so internationals don't have a shortage of places to put their cash, but with MENA underperforming they should return sometime and locals don't want to risk buying too early.” “The Fed will print more money to buy assets and so we should see a decline in the dollar in the long term,” said Hesham Tuffaha, Bakheet Investment Group head of research in Riyadh. “It will be very risky to be in cash – if you are not putting your money into equities, bonds, commodities or oil, for example, then you lose as the dollar debases.” “The overall market is over-valued because of some large-cap companies that are still suffering losses or lower profits, which has raised the overall PE (price to earnings ratio), so investors should stay away from these names and focus on companies showing earnings growth,” said Tuffaha. He named petrochemicals, building and construction, agriculture and telecoms as attractive, plus select banks. Elsewhere, the UAE capitals' index dropped 0.07 percent to 2,762 points. Dubai's index DFM ended lower for a second day, sliding 0.4 percent to 1,735 points. Kuwait benchmark fell 0.2 percent to 7,119 points. However, Qatar's index QSI climbed 0.4 percent to 7,799 points, rising for a first session in four. Oman index rose 0.3 percent to 6,500 points, ending a three-session losing streak. Meanwhile, US stocks ended a volatile session modestly higher Wednesday after the Federal Reserve detailed a plan to breathe new life into the struggling economy. Both the Dow and Nasdaq closed at levels not seen since 2008 while the S&P ended at a six-month high. The gains were preceded by an erratic session in which equities zigzagged up and down as the Fed announced a plan to buy $600 billion in Treasuries. The size of the plan was greater than had been anticipated but less than many hoped. The Dow Jones industrial average was up 26.41 points, or 0.24 percent, at 11,215.13. The Standard & Poor's 500 Index was up 4.39 points, or 0.37 percent, at 1,197.96. The Nasdaq Composite Index was up 6.75 points, or 0.27 percent, at 2,540.27. The Nasdaq ended at its highest since June 2008 while the Dow closed at its highest since September 2008. The S&P 500 closed at its best level in six months. The S&P 500 broke through its 200-week moving average, which was seen signaling further gains.
