Investor pessimism over earnings of Ezz Steel and Mobinil weighed on Egypt's bourse on Tuesday, while Abu Dhabi banks helped the emirate's market lead a small regional rebound from the previous day's declines. Selling pressure on Ezz Steel dragged Egypt's index 0.4 percent lower as trading resumed following the suspension of the country's biggest steel producer due to a delay in publishing results.
Ezz Steel fell 5.6 percent. It has yet to submit its consolidated financial results for 2010 and the first quarter of 2011. "Investors were selling shares in Ezz after the release of the suspension because there are still worries the real reason behind the delay is that financials are not good," said Mahmoud Othman of Cairo Capital Securities.
Pessimism over Mobinil weighed with traders saying its quarterly earnings may be hit by a drop in subscribers because of a row over a cartoon posted by Naguib Sawiris, a politician and chairman of Orascom Telecom (OT) which jointly owns Mobinil with France Telecom. The stock fell 2.1 percent. Some people considered the cartoon offensive to Islam, prompting some Muslims to call for a boycott of Mobinil and other businesses linked to Sawiris. ?? Slow summer trading dominated in the Gulf ahead of the Islamic fasting month of Ramadan, while concerns over US debt dampened sentiment.
"Markets were taking a breather, while international markets are still concerned about the US debt issue," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments. National Bank of Abu Dhabi gained 0.9 percent, First Gulf Bank rose 0.3 percent and Abu Dhabi Commercial Bank advanced 2 percent. Abu Dhabi's index rose 0.4 percent.
Kuwait's benchmark gained 0.4 percent to its highest close since July 14, when the market tumbled to a seven-year low on economic worries. Large-caps rose with National Bank of Kuwait climbing 1.9 percent and Commercial Bank advancing 3.6 percent. Dubai's Emaar Properties fell 0.4 percent, ahead of its second-quarter results posted after market close. The developer's quarterly net profit plunged 69 percent.
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