DUBAI/CAIRO: Real estate stocks dragged Egypt’s main index down 0.9 percent after a newspaper reported a new lawsuit to scrap a land sale to Saudi billionaire Prince Alwaleed bin Talal, while regional markets were mixed.
Property firms Palm Hills, SODIC and Talaat Moustafa fell 4 percent, 3.3 percent and 2.3 percent respectively.
Egypt’s Al-Borsa newspaper said the lawsuit was filed against the government by the Egyptian Center for Economic and Social Rights and a lawyer, calling for the newly revised farm land deal with Prince Alwaleed to be overturned.
Omar Taha, analyst at Beltone Financial, said the Egyptian stock market has become driven by day-by-day developments and newspaper reports rather than the underlying state of the economy or continued demand for housing.
EFG Hermes, Egypt’s biggest investment bank, slid 2.2 percent. The bank reported a 93 percent slump in first-quarter net profit.
Shares in appliance maker Olympic Group surged 2.3 percent after the firm denied a report that its former chief executive was banned from travel pending questioning over the acquisition of a state firm more than a decade ago.
Mohamed Seddiek, head of research at Prime Securities, said the government was partly to blame for an uncertain investment outlook.
"Government officials issue taxes and then cancel them. Nothing is certain and this is confusing foreign traders and investors," he said.
Abu Dhabi Commercial Bank hit a 32-month high on Wednesday on news it will sell a stake in Malaysia’s RHB Capital, lifting the index a five-month high.
ADCB gained 1.9 percent to its highest level since October 2008 after the Malaysian government said the lender was to sign a deal on Friday to sell its shares in RHB Capital to Abu Dhabi’s Aabar Investments.
Abu Dhabi’s benchmark rose 1.2 percent to its highest close since Jan. 10.
"ADX (is seeing a) nice move backed by the strong performance of the banking sector," said Musa Haddad, head of the MENA equity desk at National Bank of Abu Dhabi.
"The index managed to break above its golden ratio of 61.8 percent retracement from its peak in October 2010 to its low in March 2011, which is considered a very positive signal for more upside," he added.
Dubai’s index rose 2.2 percent to a five-week high.
Emaar Properties climbed 3.2 percent and Arabtec rose 3 percent. Bourse operator Dubai Financial Market jumped 5 percent.
Heavyweight lender Emirates NBD surged 5.5 percent in low volumes.
In Qatar, bargain hunters lifted the benchmark 0.9 percent to its highest close in June.
The index had fallen to a three-month low last week.
Qatar National Bank rose 2 percent and Qatar Islamic Bank was up 1 percent.
Saudi Arabia’s index extended losses, falling 0.3 percent, with most major sectors down following a late-session dip in global shares and oil prices.
