Banks dent Egyptian index
Financials lift Saudi
DUBAI, Sept 30, (RTRS): Egypt’s blue-chip index ended its three-day winning streak as declines in banking shares sent it into negative territory on Monday, while financial stocks bolstered the Saudi index. The Egyptian index lost 0.4%, with the country’s largest lender Commercial International Bank (COMI) falling 1% and Eastern Company dropping 2.6%.
Cairo Investment and Real Estate Development outperformed the market, jumping 6.3% after its board approved a 25 million euro ($27.27 million) loan agreement to finance the first phase of construction of a university in Asyut. The index is up more than 9% this year.
The Saudi Arabian index, meanwhile, firmed by 0.5%,extending gains from the previous session, helped by gains forAl Rajhi Bank and Walaa Cooperative Insurance, up 0.6% and 4.3% respectively. On Sunday Walaa Cooperative said it had a binding agreement to acquire Metlife AIG ANB in an all-share deal. Metlife closed 2.8% lower, while one of its major shareholders, Arab National Bank, advanced 3.2%. Moody’s said Saudi Arabia insurers’ weaker profitability and capitalisation pressures would spur more consolidation in the sector.
The Abu Dhabi’s index dipped by 0.3% as First Abu Dhabi Bank lost 1.1% and Abu Dhabi Commercial Bank dropped 1%. In Dubai, the index traded flat, with Air Arabia rising 3.3% while Damac Properties was down 4.1%. Fitch Ratings last week said that a weakening property market in the United Arab Emirates (UAE), where prices have fallen more than 20% since their 2014 peak, is likely to put more pressure on the banking sector’s asset quality.
The ratings agency also predicted that “a significant proportion of the $23 billion loans to Dubai government-related entities due to mature by end-2021 may be restructured again”. In Qatar, the index ended 0.3% down, extending losses for a third straight day, with Qatar Islamic Bank down 2.1% and Commercial Bank shedding 3.4%.
Saudi Arabia
The index rose 0.5% to 8,092 points
Abu Dhabi
The index lost 0.3% to 5,057 points
Dubai
The index was flat at 2,781 points
Qatar
The index slid 0.3% to 10,367 points
Egypt
The index down 0.4% to 14,258 points
Bahrain
The index fell 0.1% to 1,517 points
Oman
The index slipped 0.4% to 4,018 points
Kuwait
The index was also down 0.4% at 6,175 points