Health M&A deals lift Egyptian bourse

Mergers and acquisition activity in the health sector lifted Egypt’s stock market on yesterday, while Arabian Gulf markets mostly moved sideways.

Nozha International Hospital jumped 10 per cent to 75.62 Egyptian pounds and Cleopatra Hospital surged 7.4 per cent after Nozha said Cleopatra was seeking regulatory approval to make a mandatory tender offer for all of Nozha.

Cleopatra, advised by EFG Hermes, will offer Nozha shareholders 90 pounds per share and intends to delist its acquisition, Nozha said.

The hospital companies are not members of the blue-chip EGX30 index, but the news buoyed sentiment as investors hoped it could presage more M&A activity in a strengthening Egyptian economy.

The index climbed 1.4 per cent to 15,413 points as EFG Hermes gained 2.5 per cent and the biggest bank, International Commercial Bank , added 2.4 per cent.

Saudi Arabia’s Tadawul index was almost flat at 7,539 points but National Medical Care rose 5 per cent after saying it had signed a 300 million Saudi riyal contract to provide services for three years to Gosi, the Saudi social insurance agency.

The petrochemical firm PetroRabigh surged 4 per cent to its highest close since August 2015 in heavy trade.

In Dubai the DFM slipped fell 0.3 per cent, with Damac Properties slipping 1.7 per cent and amusement park operator DXB Entertainments losing 3.3 per cent.

In Abu Dhabi, the ADX slid 0.2 per cent to 4,625 points although UCC put on 10.7 per cent and Arkan adding 4 per cent. Fallers were led by NBQ, down 10 per cent, and Bildco, sliding 4.9 per cent.

Elsewhere, Kuwait’s index gained 0.6 per cent to 6,639 points, Bahrian’s edged up 0.1 per cent to 1,333 points and Oman’s index slipped 0.2 per cent to 5,024 points.

Oil held near a three-year high ahead of US inventory data that is expected to show a ninth week of crude-stockpile declines.

Oil is extending its run after two consecutive annual gains as Opec and allies including Russia curb supplies.

Brent for March settlement fell 1 cent to US$69.37 per barrel on the London-based ICE Futures Europe exchange after gaining 0.3 per cent on Wednesday.