Dubai developer Emaar Properties lifted the emirate's bourse on Sunday after announcing the price range for the initial public offer of its shopping malls unit, while profit-taking in Egypt continued despite positive economic news. The Dubai index rose 0.6 percent as Emaar, the largest listed developer in the emirate, added 2.3 percent. The benchmark fell 3.1 percent last week as investors cashed out to prepare for the IPO of Emaar's subsidiary.
Emaar said on Sunday, as subscriptions opened, that it expected to sell 2 billion shares in Emaar Malls Group (EMG), representing 15.4 percent of the unit's shares, in a price range of 2.50 to 2.90 dirhams per share, putting the offer's total value at up to 5.8 billion dirhams ($1.58 billion).
The share sale will end on Sept. 24 for retail investors and on Sept. 26 for institutional investors; Emaar has said it aims to allocate at least 60 percent of the offer to institutions and no more than 40 percent to retail investors. EMG shares will then list on the Dubai Financial Market on Oct. 2.
Some brokerage analysts said they felt the price range left EMG richly valued, but optimism about Dubai's retail sector and strenuous marketing efforts may ensure strong demand for the offer.
Meanwhile, Abu Dhabi's bourse slipped 0.4 percent because of banking stocks. Union National Bank dropped 4.2 percent, Abu Dhabi Commercial Bank fell 1.3 percent and National Bank of Abu Dhabi edged down 0.7 percent.
Qatar's main index climbed 0.1 percent to an all-time closing high of 14,109 points. Mobile phone operator Ooredoo was the main support, rising 1.4 percent to 132.50 riyals.
Bahrain-based Securities and Investment Company (SICO) started covering the stock with an "add" rating last Thursday and a target price of 157.00 riyals.
Saudi Arabia's main index slipped 0.3 percent amid a mixed performance by banks and petrochemicals. The benchmark has risen 13 percent since July 22 when the kingdom's stock market regulator said it would open up the bourse to direct foreign investment early next year.
"I think the next catalyst for the Saudi market will be third-quarter earnings, which should start coming out in a few weeks," said Amer Khan, senior executive at Shuaa Asset Management in Dubai.
Shares in food maker Savola Group rose 1.2 percent after the company said it had agreed to sell its entire stake in a Jeddah real estate project for 593.5 million riyals ($158 million) to an affiliate.
Egypt's bourse rose as much as 0.8 percent in early trade after the Cairo government said it would ask the International Monetary Fund for a long-delayed economic assessment in the hope of improving the country's image before a February investment conference.
But the market soon returned to a profit-taking trend that began last week, erasing all gains and closing 0.5 percent down.
"It's very natural to see the profit-booking activity given how well the market had done earlier; it's up 40 percent year-to-date," said Khan from Shuaa Asset Management.