Jan. 29--MARKETS DROP IN MUSCAT AND MANAMA: Both General indexes in Oman and Bahrain lost 1.53 percent and 1.43 percent, respectively. In Muscat only one sector advanced while eight declined. Omantel remained almost steady while Abrasives Manfactur plummeted 21.43 percent. At Bahrain Stock Exchange (BSE), leading Islamic Bank Gulf Finance House gained 1.27 percent after reporting a 14 percent fall on profits in 2008, earning U$291mn.

DOHA STOCK MARKET UP: The DSM General Index in Qatar advanced by 0.86 percent on little volumes, closing this trading week at 5253.04 points. 25 shares advanced, 11 declined and two remained steady. General insurance leads in terms of gains, advancing by 9.53 percent, as the whole insurance sector at DSM lost ground, while the segments banks, industries and services advanced little. Doha Bank is among the winning stocks as well, gaining 1.54 percent.

ABU DHABI INDEX DROPS 0.2 PERCENT: The ADX General Index lost a 0.2 percent and closed at after a dull trading day, closing at 2,255.85 points. Only 94,577,306 shares changed hands, with 14 shares advancing, seven remaining steady and 14 declining. Methaq and Bank of Sharjah enlarged their gains from the previous day. Both shares gained around 9.7 percent. Al Wathba Insurance posted the biggest lost, declining by 9.95 percent.

DFM LOSES 1.05 PERCENT: The Dubai Financial Market General Index finished this week with a loss of 1.05 percent, closing at 1,520.24 points, above the psychological support line of 1,500 points. Many investors decided to stay on the sidelines ahead of fourth quarter results in the coming week. Investment Bank Shuaa Capital was boosted by strong bank stock advances in the US and Europe, gaining almost 15 percent, while Kuwait-based Global Investment House dropped by 9.84 percent to a new low of Dhs3.48. Only four shares advanced, while four times more stocks declined and five remained steady.

FED WARNS OF GLOBAL SLOWDOWN: US Federal Reserve officials yesterday warned of a prolonged global economic slowdown that raises the spectre of deflation in the country, reported Bloomberg. For the first time during the credit crisis, the Federal Open Market Committee's statement indicated concern about the worldwide economy weakening 'significantly', with 'some risk' that inflation would remain below ideal rates. The Fed indicated that it's moving closer to buying long-term Treasuries and expanding its $600bn program to buy home-finance debt.

JORDAN, QATAR INK $2BN FUND DEAL: Jordan and Qatar agreed on Wednesday to create a $2bn Qatari investment fund in Jordan. The fund entails joint projects between the public and private sectors in both countries in the fields of food industries, mining, health, education, energy, agriculture, IT, tourism, infrastructure and financial services.

IMF REPORT PREDICTS MAJOR GLOBAL SLOWDOWN: A new report by the International Monetary Fund (IMF) predicts that global economic growth will reach 0.5 percent this year, the weakest pace since World War II. That is down from a 2.2 percent forecast in November. The monetary fund also predicted that losses linked to bad mortgage loans in the US could reach $2.2 trillion, weighing down banks worldwide. That is far higher than the $1.4 trillion it anticipated in a November report. It also foresees a 1.6 percent contraction of gross domestic product in the US this year, and 2.6 percent in Japan. The 16-nation euro area will shrink 2 percent, it said.

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