Most Gulf markets closed in positive territory on Sunday but trading volumes were thin as investors awaited company results reporting that will begin this week. In Egypt, the index gained 1.2 percent, but Global Telecom Holding plunged 7 percent after announcing earlier on Sunday its plan to convert outstanding shareholder loans of $370.6 million plus accrued interest into equity.
Global Telecom Holding said its financial position and cash flow would remain unchanged after the conversion, given this is a non-cash transaction. But the stock took a hit, plunging to a month's low. Earlier this month the firm also said it planned to raise capital via a rights issue of 11.2 billion Egyptian pounds ($627.10 million), corresponding to the issuance of 19.3 billion new shares with a par value of 0.58 Egyptian pounds.
In the Gulf, most major markets closed slightly up, with the Saudi exchange leading the gains. The index rose 1 percent, lifted by a 5.5 percent surge by Al Tayyar Travel Group Holding Company, a 2 percent gain by heavyweight Al Rajhi Banking & Investment Corp and a 10 percent jump by Saudi Cable Co.
The latter, a loss-making electrical wires manufacturer, has been gaining value since Dec. 26, when it leapt after reaching a final settlement agreement with commercial creditors on 313.6 million riyals ($83.61 million) in loans. The Dubai index closed in negative territory, shedding 0.3 percent, reversing gains made in early trading. Union Properties lost 1.9 percent, weighing on the index as it was the stock registering the highest trading volume.
Dubai's port operator DP World, which is listed on Nasdaq Dubai, edged up 0.1 percent, after saying on Sunday it had agreed to acquire a 71.3 percent stake in Chile's Puertos y Logistica (Pulogsa) from Minera Valparaiso and other shareholders associated with the Matte Group.
DP World said it would offer $502 million for 100 percent equity ownership and that it expected the deal to be "earnings accretive in the first full year of consolidation" and would be financed from existing balance resources.
The Kuwait exchange, Boursa Kuwait, upgraded Qurain Petrochemical and Human Soft Holding Co to the premier market, where the index closed 0.4 percent up on Sunday.
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