Mar. 19--KUWAITI MARKET MOVES UP STEP BY STEP: Despite new political uncertainty in the northern Gulf state that came up after the ruling Emir Al-Sabah dissolved the parliament, the Kuwait Stock Exchange (KSE) continued to post gains by advancing 0.88 percent, closing at 6,683.6 points (price index) on rising volumes.

DOHA EXCHANGE DECLINES SLIGHTLY ON PROFIT BOOKINGS: The Doha Securities Market (DSM) took a break after a quite bullish week and declined by 0.79 percent to 4,758.53 points. Banks in particular lost on profit bookings, e. g. Doha Bank (off 1.52 percent) and Commercial Bank of Qatar (1.49 percent lower). Al Ahli Bank bucked the trend by posting second largest gain of 5.13 percent. Despite becoming the largest gas exporting country in 2010, Qatar aims to diversify its economy further by doubling the size of its tourism sector from now $6bn to $12bn in 2012, according to Oxford Business Group.

CONSTRUCTION SHARES LEAD ABU DHABI EXCHANGE ADVANCES: The UAE capital's exchange ADX gained 1.17 percent, closing at 2,395.53 points on bullish construction and real estate securities. The biggest gains was posted by Umm Al-Qaiwain Cement Industries (up 9.72 percent). Market bellwether Aldar Properties, developer of the Formula-1 park in Abu Dhabi, also advanced higher (by 4.04 percent). Market particaption almost doubled compared to recent days: a total of 123,640,523 shares changed hands.

DUBAI MARKET: BULLISH FINISH OF THE WEEK: The Dubai Financial Market (DFM) quit this week 1.64 percent higher at 1,532.76 points. Two Islamic Banks led the list of top gaining shares: Ajman Bank again posted the biggest advance (up 12 percent), followed by Sharia-compliant Salam Bank (8.54 percent higher). Shares of Drake and Scull gained 6.06 percent after their tricky start on their first trading day on Monday. Rising volumes confirmed the overall positve momentum, which was also triggered by comments of the central bank's Chairman HE Dr. Sulatn Al Suawaidi that the liquidity situation is improving in the country.

KUWAIT'S SOVEREIGN RATINGS FACE DOWNGRADE: Kuwait's sovereign ratings have been placed on review by Moody's Investors Service for possible downgrade. Those under review are the Aa2 local and foreign currency government bond ratings and the Aa2 country ceiling for foreign currency bank deposits. Moody's said the move was because of the resignation of Kuwait's government and the dissolution of its parliament. 'In Moody's opinion, these events reflect an erosion of institutional strength, which is of particular concern given the current challenges presented to Kuwait by the global economic and financial crisis,' said Tristan Cooper, Senior Analyst and Vice President of Moody's Sovereign Risk Group.

GCC ECONOMIES TO TOTAL $2 TRILLION: A report by the Economist Intelligence Unit has shown that the economies of the Gulf Co-operation Council states will reach a combined total of $2 trillion by the year 2020. The report has also highlighted that the proposed monetary union among the six nations will probably not meet the scheduled deadline of 2010 after Oman opted out of the agreement.

KSA MARKET POSTS WEEKLY GAINS OF 6.53 PERCENT: The Tadawul index added 1.4 percent to its recent advances yesterday, gaining 6.53 percent during the last six days. Rising oil prices, along with bargain hunting, lifted the Tasi-Index. According to industry sources, Saudi investors repatriated SR17bn from Western markets due to high trading losses at those exchanges.

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