Gulf markets mixed, Egypt surges on international bond issue success

DUBAI / Reuters

Gulf stock markets were mixed on Thursday, supported by strong global equities and oil prices, while Egypt surged on the back of the success of Cairo’s international sovereign bond issue.
The Saudi index edged up 0.1 percent though losing stocks outnumbered gainers by 99 to 52. Petrochemical blue chip Saudi Basic Industries added 1.0 percent, while telecommunications firm Zain Saudi rose 2.9 percent.
Nama Chemicals jumped 9.6 percent on announcing the main elements of a recovery plan after accumulated losses exceeded 75 percent of its capital. The plan includes eventually increasing capital to finance production of specialty chemical products and boost capacity, and the sale of assets of an investment affiliate.
Construction firm Abdullah Abdul Mohsin al-Khodari and Sons fell 3.2 percent after it said the total value of its delayed work as of Dec. 31 was 312.7 million riyals ($83.4 million), only a slight improvement from the previous quarter.
In a statement, international equity index compiler MSCI said it welcomed reforms of the Saudi stock market and reiterated it could launch in June a study on whether to include Saudi Arabia in its emerging market index.
Kuwait’s index, which has surged more than 19 percent this month, gained 0.5 percent on Thursday in heavy trade, although decliners outnumbered advancers by 55 to 53. On Monday the government plans to announce details of its long-term economic development plan, which could be positive for the stock market if gives more impetus to big infrastructure projects. Dubai’s index rose 0.6 percent in a broad rally, with all 10 of the most heavily traded stocks gaining. GFH Financial, the most active stock, rebounded 4.9 percent after plunging 9.7 percent on Wednesday.
Real estate firm Deyaar, which dropped 5.0 percent on Wednesday after its fourth-quarter profit more than halved, recovered 1.6 percent.
Qatar’s index fell 0.4 percent. But Qatar International Islamic Bank rose 3.0 percent despite reporting a 7 percent fall in fourth-quarter net profit to 118.4 million riyals ($32.5 million), slightly below QNB Financial Services’ forecast of 126.2 million riyals.
Qatar Cement climbed 4.1 percent after annual net profit expanded to 475.1 million riyals from 463.6 million. Its board proposed an annual cash dividend of 40 percent, and a 10 percent bonus share issue.
Egypt’s market, reopening after a public holiday on Wednesday, climbed 1.6 percent in moderate volume after news the government was set to sell $4 billion of Eurobonds in three tranches, raising twice as much as targeted when it began a roadshow last week, and at lower yields than initially expected.
It was a vote of confidence from foreign investors in the country and confirmation that Cairo has access to international capital markets to cover its deficits.
Investment firm Qalaa Holdings, which has been volatile in recent days, rocketed 9.6 percent.
Alexandria Flour Mills and Bakeries Co surged 3.3 percent after saying its first-half net profit rose to 24.4 million Egyptian pounds ($1.3 million) from 19.8 million pounds a year ago.