Middle East markets: Zain drags on Kuwait index

03 Dec, 2010

Most Middle Eastern equity markets tracked global stocks higher on Thursday, with Egyptian stocks gaining as results from Amer Group boosted confidence in the country's housing sector. Kuwait's main index fell for a third straight session after a Zain shareholder filed a lawsuit to halt due diligence ahead of a planned $12 billion sale of a stake in the telecoms company to Abu Dhabi's Etisalat.
Zain slipped 2.9 percent, helping drag the Kuwait index down 0.47 percent to its lowest since September 28. After trading closed on Thursday, sources familiar with the situation said Zain had appointed UBS to sell the Saudi business. Regulators require that sale to allow Etisalat's bid for a controlling stake in the parent firm to pass.
As Kuwait declined, the Qatar, Oman and Egyptian indexes registered gains of 0.68 percent, 0.4 percent and 0.1 percent, respectively. Markets in the United Arab Emirates and Saudi Arabia were shut for public holidays. Egypt investors continued picking up shares in smaller housing companies after Amer Group posted nine-month profit that boosted confidence in the sector, traders said.
The newly listed property development and business services conglomerate said its nine-month net profit rose 7.5 percent to 422 million Egyptian pounds ($73 million). United Housing was Egypt's fifth most traded stock. Small caps Egypt Housing and El Kahera Housing were among the top 10 traded stocks on the Egyptian Exchange, closing up 2.5 percent and 2 percent, respectively. Amer dipped 2.5 percent to 2.76 pounds per share compared with its initial public offering price last week of 2.8 pounds.

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