Egypt's stock market rose on Monday on encouraging corporate news, while most Gulf bourses fell, tracking oil prices as they came under pressure from weak economic data out of China. The Cairo index rose 1.1 percent and Qalaa Holdings was one of the main supports. Its shares jumped 3.9 percent after the company announced the second round of its capital increase had been covered 64.7 percent.
-- Dubai logistics firms rise in otherwise bearish Gulf
In that exercise, Qalaa's co-investors in various ventures swapped their stakes for shares in Qalaa, which allowed the firm to raise its stakes in core assets. "As per our assessment, Qalaa's current market capitalisation implies an undervalued situation," the Cairo-based Naeem brokerage said in a note. Also, Saudi Food maker Halwani Brothers said on Monday it had submitted a binding offer to buy confectionery company El Rashidi El Mizan, a Qalaa subsidiary. It did not disclose the value of the potential acquisition.
Most other stocks also gained, although Ezz Steel dropped 3.5 percent after a subsidiary, El Ezz Aldekhela Steel Alexandria, said it had swung to a second-quarter loss due to energy shortages. One of the factors supporting the broader market are expectations that Egypt's central bank will cut interest rates at its meeting on Thursday, which will boost economic growth. In the Gulf, most markets extended losses as oil prices fell on weaker-than-expected Chinese economic data.
Saudi Arabia's main index fell 1.5 percent with most stocks in the red. Heavyweights Saudi Basic Industries and National Commercial Bank fell 1.9 and 2.2 percent respectively. Dubai's benchmark fell 1.6 percent in another broad sell-off. However, logistics companies DP Worls and Aramex, seen by some investors as hedges against weak oil that could also benefit from the dropping of sanctions against Iran, rose 2.7 and 1.9 percent respectively. Abu Dhabi's bourse fell 1.5 percent and Qatar's index was down 1.1 percent.
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