Egypt's bourse jumped on Monday after the regulator approved France Telecom's offer for a stake in Mobinil, while Saudi stocks extended their decline as investors booked profits, while other Gulf bourses closed mixed. Mobinil soared 6.7 percent after Egyptian regulator EFSA said France Telecom could bid for most of the outstanding shares in the company, a venture between the French group and local partner Orascom Telecom Media and Technology.
Mobinil was trading for weeks below France Telecom's offer price of 202.5 Egyptian pounds ($33.49) per share, partly because of concern that EFSA might not approve the purchase. "Locals are getting in to benefit from the 5 percent premium but foreigners want to get out as they don't want to wait a month for their money given the risk of a currency drop," said Teymour el-Derini of Naeem Brokerage.
OTMT gained 2.1 percent after it was suspended for most of the morning. In Saudi Arabia, the index ended 0.7 percent lower at 7,525 points, trimming year-to-date gains to 17.3 percent. It is down 5.3 percent from April 3's three-and-a-half year peak. "The bears found their way to start a new attack toward the bulls," said Mohabeldeen Agena, head of technical analysis at Cairo's Beltone Financial.
In Dubai's, the index ended 0.6 percent lower, down for a sixth session in seven. It is down 6.5 percent from March 5's 16-month high. Bellwether Emaar Properties eased 0.3 percent lower ahead of its results expected this week. Abu Dhabi's index rose 0.1 percent from Sunday's nine-week low. Abu Dhabi National Energy (Taqa) was the main support, up 3.1 percent. In Qatar, the benchmark slipped 0.1 percent. Commercial Bank of Qatar ended flat after it posted a 5.6 percent jump in earnings on Sunday, missing forecasts.