Gulf markets ended mixed on Tuesday, with three regional benchmarks hitting multi-week highs, while Dubai and Saudi Arabia wilted under selling pressure as waning global sentiment sapped investor confidence. Oman reached its highest close since early November and Abu Dhabi and Qatar hit 11-week highs, but Kuwait fell for a third day running as three of its five largest stocks retreated. Saudi Arabia's index slumped to a two-week low as uncertainty over future bank provisions and stuttering oil prices weighed on sentiment. SABB fell 2.3 percent and Al-Rajhi Bank dropped 0.8 percent. “Earnings visibility for banks is low and investors can't make a short-term call on what the numbers will be like in the coming quarters,” said Jithesh Gopi, head of research at SICO investment bank. This uncertainty is because of a lack of clarity over likely future provisions, Gopi said. Saudi Arabia's central bank sees no risk to the country's banking system from two troubled conglomerates, Saad Group and Ahmad Hamad Algosaibi & Bros, but the government has set up a panel to examine the pair and take appropriate action, the bank's governor said on Tuesday. Late selling pressure dragged Dubai's index to its second straight decline and largest one-day reverse for two weeks as investors booked profits from a recent rally after downbeat signals from US stocks. Emaar Properties fell 2.6 percent after hitting a 10-week high earlier in the session, while Arabtec dropped 1.7 percent. “Dow (Jones Industrial Average) futures went from being positive and flat to negative and that sparked a sell off in Dubai, particularly in the large-cap, liquid stocks such as Arabtec and Emaar,” said Ian Munro, MAC Capital Advisors head of research. “When our markets get to around lunchtime, investors look for guidance from US futures and the opening on European markets. Investors are still quite nervous and so lock in any gains they can.” Dow Jones, Nasdaq and S&P 500 futures fell 0.5-0.6 percent, pointing to a weaker start on Wall Street, as investors worried there was insufficient evidence of economic recovery to justify the markets' surge since March. “International markets are cooling off and we're doing the same,” added Loghani. A Abu Dhabi's index rose for a third session running, pushed higher by gains in Aldar Properties and Sorouh Real Estate , which rose 1.9 percent and 0.3 percent respectively. Boubyan Bank bucked Kuwait's negative trend, surging 7.2 percent in its largest one-day gain since June 25 after the Islamic lender revealed plans to raise its capital to $609 million to fund domestic expansion, with the central bank giving approval for the move.
