CAIRO/DUBAI: Egypt’s Orascom Telecom (OT) surged on Monday on a report of a positive valuation of a unit, helping the bourse break a six-day losing streak, while Gulf markets ended lower on concerns over the European debt.
OT ended 10 percent higher after an Egyptian newspaper said a law firm valued its Algerian unit Djezzy at $7 billion.
"We are still waiting on confirmation of the news. But if it is real then this is an extremely positive valuation," said Margo Moussa an analyst at Arab Finance Brokerage.
Egyptian Company for Mobile Services also climbed 10 percent, and the index gained 1.9 percent.
In Dubai, the index ended 0.6 percent lower, halting a four-session uptrend as losers outnumbered gainers by 14 to three. Abu Dhabi’s benchmark fell for a ninth straight session, down 0.3 percent.
Dana Gas fell 1.8 percent. Sorouh Real Estate and Aldar Properties each fell 1.7 percent. Newly listed Eshraq Properties tumbled 8 percent.
"The uncertainty is still there in international markets — the volatility is affecting our markets," said Marwan Shurrab, vice-president at Gulfmena Investments.
"There is a less clear view on Greek debt issues, which is affecting commodity prices, Asian markets and futures markets."
Investors reduced positions regional-wide amid a global decline, spurred by rising concerns over euro debt and a possible Greek default.
Saudi banking and petrochemical stocks led the index 0.4 percent lower, falling for a second day since Saturday’s six-week high.
In Qatar, the index shed 0.3 percent, with Masraf Al Rayan losing 0.9 percent, Barwa Real Estate slipped 0.7 percent and Industries Qatar down 0.8 percent.
"We are more geared toward stocks that are domestically driven and shying away from those linked with global volatility," said Shahid Hameed, a Global Investment House head of asset management. "We are underweight on energy stocks."
In Kuwait, the benchmark shed 0.4 percent, extending declines for a third day since Wednesday’s six-week high.
In Oman, shares fell for a first session in five with the index declining 0.1 percent. Losers outnumbered gainers 17 to three.
Bank Muscat slid 0.4 percent and was the top trader by value. United Finance jumped 1.8 percent, up for a fifth straight session.
"There is a lack of conviction towards building new positions, so turnover is low. Everyone is on the sidelines, waiting for a clearer view on global outlook before participating," said Shurrab.
