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Reuters
Most Gulf stock markets edged up on Tuesday although trading volumes were generally low, while Emaar Malls jumped in Dubai after the company appeared to lose a contest with Amazon.com to acquire Middle Eastern online retailer Souq.com.
Emaar Malls added 3.6 percent, outperforming Dubai’s stock index, which dropped 0.2 percent.
The company’s shares had dropped 2.8 percent in the previous two days on news it was making an $800 million bid to acquire e-commerce operator Souq.com, which could have put it in a bidding war with Amazon.com. The US company had agreed in principle to buy Souq.com.
In a report, investment bank Exotix listed possible concerns for minority shareholders in Emaar Malls’ bid, including whether the online retail industry had synergies with retail mall management, and whether buying Souq.com would be an optimal allocation of capital.
On Tuesday, Amazon .com and Souq.com said jointly that Amazon had agreed to acquire the Middle Eastern firm,
apparently ending the battle.
Seven of Dubai’s most heavily traded stocks fell and two were flat; Emaar Malls was the only gainer among them.
Abu Dhabi’s index edged up 0.1 percent and Qatar rose 0.3 percent, buoyed by Vodafone Qatar, which gained 4.4 percent and was the most heavily traded stock.
The Saudi Arabian index rose 0.3 percent. Saudi Automotive, which offers services to motorists, saw unusually heavy trading and was the most active stock; it surged
4.1 percent.
Riyad Bank lost 1.9 percent and Saudi Public Transport fell 3.0 percent as the two stocks went ex-dividend.
In Kuwait, Kuwait Insurance Co sank 3.6 percent as it went ex-dividend but the market index gained 0.3 percent.