Shares in Saudi Arabian Mining Co (Ma'aden) helped lift the Riyadh bourse on Tuesday as they surged to a record high, while other Gulf markets barely moved and profit-taking continued in Egypt. Saudi Arabia's index rose 0.8 percent and Ma'aden gained 6.4 percent to 47.90 riyals, becoming the most heavily traded stock and breaking through technical resistance at 46.30 riyals, where it had peaked in March and April.
Al Rajhi Capital this week raised Ma'aden's target price to 52.00 riyals from 41.00 riyals, citing its growing output and an improving business outlook. Ma'aden said this month that its massive smelter run jointly with US group Alcoa, which had experienced several technical glitches on start-up, would produce above its initial capacity target this year. Dairy firm Almarai rose 1.4 percent after its board approved a capital investment plan for 2016-2020 which will reach 21 billion riyals ($5.6 billion).
The firm said it wanted to double consolidated sales in the period and expand its activities in farming, manufacturing, distribution and logistics. Foodmaker Savola Group, which has a 36.5 percent stake in Almarai, rose 0.9 percent. Other Gulf markets were trendless and barely moved on Tuesday. Dubai's index edged down 0.2 percent as most stocks declined in low-volume trading.
But retail and restaurant start-up Marka surged 5.7 percent after a company executive said it expected to turn profitable in 2016, even though the firm had earlier targeted profitability in the fourth quarter of 2015. Marka also announced the completion of its first international investment: a 65 percent acquisition in Icons, a football memorabilia company, for 15.3 million dirhams ($4.2 million).
Abu Dhabi's bourse slipped 0.2 percent but Abu Dhabi Commercial Bank climbed 0.6 percent. MSCI increased the stock's weighting in its emerging markets index in its latest review, which will take effect at the end of this month. Another stock upgraded by MSCI, Ezdan Holding, rose 1.5 percent and was the main support for Qatar's index , which inched up 0.1 percent. Ezdan will join the emerging markets benchmark for the first time.
Egypt's market edged down 0.8 percent as Telecom Egypt tumbled 4.3 percent ahead of its exclusion from MSCI's emerging markets index. The move, which takes effect at the end of this month, is likely to result in a sell-off by passive funds which closely follow the MSCI benchmark; active investors have already been selling in anticipation. Meanwhile, property firm Medinet Nasr for Housing and Development (MNHD) rose 1.9 percent after its board approved an offer from Saudi Arabian retailer Fawaz Abdulaziz Alhokair to build a mall at MNHD's Teegan development.
Alhokair, whose shares rose 0.7 percent on Tuesday, will own and operate the mall for 50 years before transferring it to MNHD, which in the meantime will receive a share of the mall's revenues under the proposed deal. Beltone Financial Holding, the main shareholder of MNHD with a 31.2 percent stake, surged 9.1 percent. "Such deals should help MNHD to significantly improve on its financial performance and balance sheet, enabling it to unlock significant value from its unutilised land bank," Cairo's Naeem Brokerage said in a note.
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