Doha: Qatar Exchange ended in the red when trading closed yesterday at 10,462.54 points, down 35.91 points or 0.34 percent, from the previous closing of 10,498.45 on Tuesday. Among the top losers were Qatar Insurance whose share was down 0.76 percent to QR65.30, Ooredoo lost 1.02 percent to QR136.50, National Leasing fell 0.99 percent to QR30 and Masraf Al Rayan decreased by 1.07 percent to QR32.50.
Meanwhile, shares in Egypt Telecom surged yesterday in response to a newspaper report, which it denied, that it might sell its 45 percent stake in Vodafone Egypt. Egypt’s telecommunications regulator said early this month that it would in coming weeks issue a licence allowing a company to operate fixed-line and mobile networks, a move that could allow Telecom Egypt to offer mobile services.
Currently, Telecom Egypt offers only fixed line services; if it gets a mobile licence, to avoid a conflict of interest it is expected to either sell out of Vodafone Egypt or try to raise its ownership to a controlling level.
“Either scenario is positive for TE,” said Sarah Shabayek, telecommunications analyst at Egypt’s CI Capital. If Telecom Egypt sells it will pay out some of the cash in the form of a higher dividend, and if it raises its Vodafone Egypt stake, it will be increasing its exposure to a leading, established mobile operator, Shabayek argued.
Kuwait’s Al Rai newspaper quoting unnamed sources reported that Saudi Telecom might buy Telecom Egypt’s stake in Vodafone Egypt. After the Cairo market closed, Telecom Egypt said in a statement that it was not looking to sell the stake. Saudi Telecom officials could not be contacted for comment.
Speculation about a possible sale boosted shares in Telecom Egypt by 5.2 percent in active trade to their highest since October 22. Vodafone Egypt slipped 1.3 percent, while Saudi Telecom was flat. Cairo’s benchmark index rose 1.4 percent to 6,870 points yesterday, its highest level since January 2011.
In Abu Dhabi, Dana Gas jumped 14.7 percent to 0.86 dirham, closing limit-up, after the firm said it received a $53m payment out of the total of $330m owed to it by Egypt. It was the stock’s biggest one-day gain since March 2006, and its heaviest daily trading since at least late 2011.
Dana also said Egypt had committed to work with the company on a plan to repay the remainder of its debt of $277m.
Abu Dhabi’s benchmark climbed 0.6 percent to a fresh five-year high. In the absence of other major news, investors bet on small caps in the United Arab Emirates, helping push up Dubai’s benchmark by 0.8 percent to a new five-year high. Saudi Arabia’s measure slipped 0.5 percent. Banking shares were the main drag; the sector’s index shed 1.3 percent.
HIGHLIGHTS
EGYPT: The index rose 1.4 percent to 6,870 points.
DUBAI: The index climbed 0.8 percent to 3,307 points.
ABU DHABI: The index gained 0.6 percent to 4,186 points.
SAUDI ARABIA: The index declined 0.5 percent to 8,482 points.
KUWAIT: The index ticked up 0.07 percent to 7,644 points.
OMAN: The index slipped 0.2 percent to 6,784 points.
BAHRAIN: The index gained 0.8 percent to 1,217 points.
Reuters
