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Gulf markets narrowly mixed in thin trade.

Gulf markets are mixed in thin trading, with investors booking some gains in the United Arab Emirates and Qatar.

Abu Dhabi's benchmark slips 0.2 percent to 3,878 points, trimming its 2013 gains to 47.5 percent. The index has recorded a negative 14-day momentum divergence over the past several days, a classic sign of the end of a short-term uptrend.

"A regional pull-back is underway after strong upward moves over the past month," Al Masah Capital says in a note. "Abu Dhabi stocks started to descend from overbought levels yesterday and could continue as the index still remains in overbought territory."

Dubai's measure however gains 0.4 percent to 2,516 points, moving sideways since retreating from last week's near-five-year high.

Shares in budget carrier Air Arabia add 3.2 percent. The market is dominated by short-term retail investors, traders say.

In Qatar, the index slips 0.2 percent to 9,637 points, extending declines from Thursday's 58-month high.

"The Doha index also looks toppish after breaking the 9,600 (resistance) level and is now retreating from overbought levels," Al Masah adds.

In Kuwait, telecommunications operator Zain trades flat after its second-quarter earnings fall but beat analysts' forecasts.

The Kuwaiti bourse declines 0.2 percent to 8,095 points, easing off Sunday's eight-week high.

Saudi Arabia's measure opens in low volumes, easing 0.1 percent to 7,755 points and heading for its fifth decline since hitting a 15-month peak. There is no clear market reaction to news late Sunday that the government awarded $22.5 billion in contracts to three foreign-led consortia for construction of the first metro rail system in Riyadh.

Trading is thin in most markets during the month of Ramadan with many investors occupied with fasting. Heavy retail activity in the UAE has been an exception to the pattern. ----------------------------------------------------------------

0552 GMT - Kuwaiti telecommunications operator Zain may gain on Monday after it beat estimates for second-quarter earnings.

The firm reported a 14 percent fall in its second-quarter net profit on Sunday to 61 million dinars ($214 million), but that exceeded analysts' average forecast of 55.35 million dinars.

The Kuwait market in general may also gain moderate support from the results of Saturday's elections, which appear to have produced a parliament that is likely to cooperate with the cabinet on economic development plans.

In Egypt, OCI NV said it expects to own more than 97 percent of Cairo-listed affiliate and blue chip Orascom Construction Industries after a tender offer expired on Sunday. This seems likely to lead to the delisting of OCI,Egypt's largest stock by market value.

OCI shares dropped 5 percent on Sunday after the offer expired, the main drag on the benchmark index, which slipped 0.7 percent.

Political tensions and the risk of further violence in Egypt remain high, with several thousand supporters of ousted president Mohamed Mursi marching on a military facility in Cairo. Nevertheless, market movements on Sunday showed most investors will not be deterred by violence as long as it does not derail the country's transition back to civilian rule.

The tone in Asian markets is soft; the yen rose to a one-month high against the dollar as investors braced for another round of disappointing economic news out of China, knocking Japanese stocks to four-week lows and pulling down regional markets.

Brent oil futures are little changed above $107 a barrel on Monday.

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Publication:CPI Financial
Date:Jul 29, 2013
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