QNB drags down Qatar; Dubai advances Wednesday, 19 October 2011 14:07

Qatar National Bank leads the decline on index which slips for a second day, while Dubai's benchmark lifts from Tuesday's seven-month low.

QNB falls 1.4 percent after saying it has entered negotiations to acquire Denizbank , the fast-growing Turkish arm of euro zone debt casualty Dexia , in a deal potentially worth up to $6 billion.

The move is seen as a positive investment for the bank, but shareholders are worried about the cash drain the investment would require.

The index ends 0.3 percent lower at 8,376 points, down for a second day since Monday's four-week high.

"The market is still swinging in a trading range," says a Doha-based trader on condition of anonymity. "Over the short term things are fuzzy and still looking for direction. It looks more bearish than bullish unless we penetrate the 8,500 points."

Qatar Electricity and Water sheds 0.7 percent and Industries Qatar slips 0.2 percent.

Meanwhile, Dubai's index rises 0.4 percent to 1,363 points, up from Tuesday's fresh seven-month low with upbeat global sentiment helping lift some of the gloom.

Emaar Properties gains 0.8 percent, Dubai Financial Market rises 2.2 percent and telecom operator Du is up 1.4 percent.

"Today, as international markets are more stable and picking up, GCC markets are also responding positively," says Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain.

Abu Dhabi's benchmark fails to make gains despite property stocks halting their decline. It eases 0.04 percent to 2,446 points as small cap banks weigh. (Reuters/ Nadia Saleem)