* Abu Dhabi cement makers rally on prospects of stronger
* Dana Gas, Union National Bank fall after earnings
* Arabtec surges but Emaar sell-off drags down Dubai
* Saudi banks continue to gain after Riyad's capital boost
* Egypt rises as govt says $4 bln stimulus package imminent
By Olzhas Auyezov
DUBAI, Feb 2 A $6.1 billion contract awarded by
Abu Dhabi state fund Aabar to Dubai's Arabtec helped
fuel a cement sector rally in Abu Dhabi but failed to offset
profit-taking on Dubai's bourse on Sunday, while banks lifted
Saudi Arabia's market.
Confirming a Reuters report on Saturday, Arabtec said on
Sunday that it would build 37 towers for Aabar, which is its
biggest shareholder, and become Aabar's contractor of choice for
projects around the world worth $20 billion.
Arabtec's stock rose 2.8 percent and another Dubai-based
builder, Drake and Scull, gained 2.0 percent. But a 1.4
percent drop by heavyweight property developer Emaar
dragged Dubai's main market index down 0.4 percent.
Emaar might have been affected by news of the full
conversion of its $500 million bond into shares last week, said
Ali Adou, portfolio manager at The National Investor.
"Overall, the market has to cool down, especially after the
rally that we saw since the beginning of this year," he said.
Dubai's index gained 12 percent in January.
Dubai's main index closed at 3,754 points; since Jan. 23 it
has been unsuccessfully testing resistance around 3,807 points,
the 50 percent retracement of the drop from its 2008 peak.
Abu Dhabi's main index rose 0.4 percent, led by Ras
Al Khaima Cement Co which on Sunday reported a 7.9
million dirham ($2.2 million) profit for 2013, recovering from a
7.3 million dirham loss in 2012.
That, along with news of the Aabar-Arabtec deal, sparked a
rally in the cement sector. Shares in Ras Al Khaima Cement
surged 14.6 percent; Ras Al Khaima White Cement and Construction
Materials, Gulf Cement, Union Cement
and Sharjah Cement also rose.
Large property projects, along with construction related to
the Expo 2020 world's fair in Dubai, will "obviously impact
cement prices and benefit local cement producers", said Marwan
Shurrab, fund manager and head of trading at Vision Investments.
The cement rally offset losses by Dana Gas, which
on Sunday posted a 6 percent fall in 2013 net profit, and Union
National Bank, whose fourth-quarter profit fell short
of analysts' estimates.
In Saudi Arabia, the main index rose 0.9 percent,
led by the banking sector which continued a rally ignited last
week by Riyad Bank's proposal to double its capital by
issuing bonus shares. Riyad Bank rose 2.7 percent to a fresh
five-year high on Sunday.
Egypt's bourse rose 0.4 percent after Finance
Minister Ahmed Galal said the government would announce details
of a fresh $4 billion stimulus package within days.
* The index fell 0.4 percent to 3,754 points.
* The index climbed 0.4 percent to 4,693 points.
* The index gained 0.9 percent to 8,835 points.
* The index climbed 0.4 percent to 7,436 points.
* The index gained 0.2 percent to 11,174 points.
* The index edged up 0.07 percent to 7,093 points.
* The index rose 0.7 percent to 7,810 points.
* The index slipped 0.2 percent to 1,291 points.