Egypt's main index dropped to a week-low on Thursday, as property stocks were hit by economic uncertainty and the slow pace of political change, while trading was lacklustre in the rest of the region. All but seven stocks on the Cairo index declined, with real estate developers SODIC, Palm Hills and Talaat Moustafa falling 3.6 percent, 3.8 percent, and 1.8 percent respectively.
The benchmark dropped 0.9 percent to 5,426 points, its lowest level since March 29. "Low volume is killing the market," said Mohamed Radwan, head of equities at Pharos Securities. He said rallies by some stocks in recent weeks brought them to levels that were unattractive to investors given the continued uncertain market outlook. "It's very difficult to come into the market without a discount ... after what has happened in the country," added Radwan.
Property firms have been hit especially hard by the overthrow of President Hosni Mubarak because they are seen as having relied most on close ties to the wealthy political elite of which he was the patron. Authorities on Wednesday arrested former Housing Minister Ibrahim Soliman, who was responsible for several controversial land deals under Mubarak.
Qatar National Bank ended at a two-month high after the lender's first-quarter profit rose 34 percent, lifting the Doha index 0.9 percent. QNB climbed 2.6 percent to its highest close since February 3.
In the United Arab Emirates, property stocks advanced but trading volumes were low ahead of the first-quarter earnings. "UAE markets lack a catalyst and investors are on the sidelines waiting for the first earnings report of the year," said Marwan Shurrab, vice president and the chief trader at Gulfmena Alternative Investments. "The first quarter results will now be the driving force." Emaar Properties gained 1.3 percent, and Arabtec climbed 1.7 percent.
Abu Dhabi's index gained 0.2 percent while Dubai's benchmark slipped 0.1 percent. Banks led a rally, helping Kuwait's index edge higher, as traders said they expected healthy first-quarter earnings from the sector. Kuwait Finance House gained 1.9 percent and Gulf Bank climbed 2 percent.
"Investors are bullish about the banking sector and expect good results because of the heavy provisions booked last time," said a Kuwaiti trader. Telecom firm Zain ended flat. Zain said it has signed a term sheet agreement to sell its quarter-stake in Zain Saudi, paving the way for a due diligence process on the $950 million deal.