Egypt's bourse fell for a seventh session on mounting political tension on Wednesday ahead of former President Hosni Mubarak's trial, and most Gulf markets fell amid global uncertainty. In Egypt, the latest in a series of mass protests, has been scheduled for Friday, adding to the tension in the country.
"We are still waiting for next Friday's protest, and no one knows how it will turn out," said investment and capital market analyst Nader Khedr. The benchmark index closed 0.7 percent lower. Ezz Steel dropped 3 percent, down for a second day after the exchange on Tuesday briefly suspended trading in its shares until the Egypt's top steel producer submits its consolidated results for 2010 and the first quarter of 2011.
Cairo-based private equity firm Citadel Capital tumbled 3.9 percent after talks with Abraaj Capital ended without the Dubai-based firm agreeing to buy a stake in its Egyptian rival. Investors across the Gulf reduced positions ahead of the Islamic fasting month of Ramazan amid an uncertain global scenario. Gold soared to a record high for the sixth time in two weeks on Wednesday and the dollar slumped to another record low against the Swiss franc as investors sought safety from a possible US debt default. Equities were weaker globally, particularly in Europe and Japan. In Abu Dhabi, telecoms operator Etisalat dragged Abu Dhabi's benchmark to an eight-week low.
Etisalat fell 3.3 percent after paying out dividend. Banks saw profit-taking from Tuesday's gains. First Gulf Bank slipped 0.6 percent, Abu Dhabi Commercial Bank shed 0.7 percent and Union National Bank declined 0.3 percent. The index dropped 1.2 percent to its lowest close since May 31. Dubai's Emaar Properties ended 0.7 percent lower after the company posted a 69 percent drop in quarterly net profit on Tuesday and missed estimates.
The benchmark lost 0.3 percent to a four-week low. In Oman, the index ended 0.4 percent lower, after gaining for two days. Five of the ten largest stocks fell with Renaissance Services falling 2.1 percent and Nawras slipping 0.4 percent.
"On second-quarter numbers, we are comfortable with the Oman banking sector," said Kanaga Sundar, Gulf Baader Capital Markets head of research. "Industry sector earnings came out as a mixed bag for Q2." Telecoms operator Nawras posted a quarterly net profit drop of 13 percent to 10 million rials ($26 million) after the close of trading, missing forecasts.
In Kuwait, Gulf Finance House dragged the index 0.4 percent lower, down for second day in four. GFH tumbled 5.1 percent to take its July losses to 14.5 percent despite its gains this week. Investors have been booking profits in the stock after it soared when its chairman sold his $1.4 million stake in the firm last week.
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