Feb. 26--ABU DHABI: ADX GAINS 1.61 PERCENT: The ADX General Index continued its step-by-step-gains, surging 1.61 percent to 2,376.48 points. The telecommunications sector in particular posted strong advances (up 6.39 percent). Shares of Qatar Telecom (Qtel) closed 4.4 percent higher. Qtel announces today that it will hold a 65 percent effective stake inPT Indosat Tbk, the second largest mobile operator in Indonesia. However, the biggest single gain at the ADX was posted by Ras al Khaims-based Julphar: the pharmaceutical giant gained 10 percent ahead of the weekend.

DSM PLUMMETS BY SIX PERCENT: The Doha Securities Market (DSM) fell below its January lows, declining by 6.02 percent to 4,438.00 points on higher volumes. Investors dumped nearly all shares, with real estate developer UDC posting the biggest loss (down 9.69 percent). The firm has built the iconic Islanc The Pearl Qatar near Doha. Banks like CWB or Dubai Bank also posted losses of over nine percent and six percent, respectively. Only Gulf International (up 3.61 percent) and Al-Khaleej Insurance (0.44 percent higher) bucked the trend.

DFM DECLINES BY 0.58 PERCENT: Although the DFM General Index was lifted into positve territory, the market declined in a last minute move by 0.58 percent. The Index closed at 1,558.98 points still above the critical support line of 1,500 points. Shares of Commercial Bank of Dubai were lifted by 4.76 percent after strong selling pressure sent the number nine in the UAE banking sector down during the week. Volumes came down to around 340m shares, after reaching a One-year-high of over 1bn shares.

KUWAIT, KSA EXCHANGES CLOSED ON THURSDAY: Stock markets in Saudi Arabia and Kuwait will remain closed on today. While Kuwait celebrates its National Day of Liberation, there is usually no trading at the Saudi stock market on Thursday. Both markets showed some form of stabilization since the beginning of the year, but remain volatile.

GCC STATES TO FACE BUDGET DEFICITS: A new report by Bank of America-Merrill Lynch forecasts that the six Gulf states are likley to face budget deficits of 5 percent of their GDP this year, down from a 30 percent surplus in 2008. Falling global oil prices, combined with the more urgent necessity to increase public spending will result in a regional budget deficit, the report said.

UAE'S DEBT REDEMPTION FOR THIS YEAR 'MANAGEABLE': A new report by Bank of America and Merril Lynch estimates that the UAE's total debt obligations are $142bn, of which $24bn is due for repayment this year, reported Khaleej Times. The report said UAE's overall level of redemption for 2009, including $15bn for Dubai, 'seemed manageable'. While the national debt dynamics for the UAE and GCC are strong, the report cautioned that lack of clarity on the exact balance sheet positions was a cause of concern.

-----

To see more of AME Info, go to http://www.ameinfo.com.

Copyright (c) 2009, AME Info, Abu Dhabi, United Arab Emirates

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.