Persian Gulf Shares Fall, Led by Tabreed, Emirates Telecom

By Matthew Brown

June 29 (Bloomberg) -- Persian Gulf shares retreated, led by National Central Cooling Co., known as Tabreed, and Emirates Telecommunications Co., tracking declines in the U.S. and Europe.

Tabreed dropped after announcing plans to form an asset holding company. Emirates Telecommunications, also known as Etisalat, fell the most in two weeks. National Bank of Oman Ltd. lost for a fifth day.

``Declines globally are pushing sentiment lower in the Gulf,'' said Julian Bruce, director of institutional sales at EFG-Hermes Holding SAE, Egypt's largest investment bank, in an e-mail. ``Local interest has dissipated, volumes are low and there doesn't seem to be a catalyst before the summer.''

The Dubai Financial Market General Index retreated 0.5 percent to 5,406.02. The Abu Dhabi Securities Exchange General Index lost 1.1 percent, while Oman's Muscat Securities Market 30 Index fell 1 percent.

U.S. stocks slumped last week, pushing the Dow Jones Industrial Average to the brink of a bear market, on mounting concern that writedowns and record oil prices will keep eroding profit and economic growth. In Europe, the Dow Jones Stoxx 600 declined 2.6 percent for the week.

About 141 million shares traded in Dubai's index today, 60 percent less than the six-month daily average. In Abu Dhabi volume fell 23 percent, compared with the six-month average.

Saudi Shares Gain

Tabreed lost 1.6 percent to 2.41 dirhams. The United Arab Emirates-based refrigeration company plans to form an asset holding company in a bid to boost profitability.

Etisalat, the second-largest Arab phone company by market value, dropped 1.5 percent, the biggest decline since June 15, to 19.5 dirhams. National Bank of Oman, the country's second- largest bank by market value, retreated 1.5 percent to 0.746 rial, bringing the five-day slump to 6.5 percent.

Saudi Arabia's Tadawul All Shares Index gained 0.1 percent to 9,324.36. The Bahrain All Share Index added less than 0.1 percent. The Kuwait Stock Exchange Index declined 0.5 percent. In Qatar, the Doha Securities Market Index dropped for a fourth day, losing 1.1 percent.

Doha Bank fell 1.2 percent to 82.5 riyals. Qatar's third- biggest bank by assets said second-quarter profit growth will probably match the 23 percent rise reported in the first three months of the year.

To contact the reporter on this story: Matthew Brown in Dubai at mbrown42@bloomberg.net