Egypt hits fresh 4-week low after opposition boycotts poll

Saudi recovers from 3-week low; UAE markets gain

DUBAI, Feb 27, (RTRS): Egypt’s bourse fell to a fresh four-week low as political tension from opposition boycotting upcoming parliamentary elections weighed on investors sentiment, while most Gulf markets recovered losses from the previous session.

An alliance of opposition parties in Egypt decided to boycott upcoming parliamentary polls in protest to an election law they say favours the Muslim Brotherhood, increasing the chance that Islamists will sweep the vote.

“Investors hoped that the government will come to a resolution with opposition but since they did not, it’s creating distress in the market,” said Mohamed Radwan, director of international sales at Pharos Securities.

The market is also under pressure from planned taxes to be imposed under the new economic reform program, Radwan said. Egypt will send a new economic plan needed to secure a lifeline from the International Monetary Fund, to shore up the country’s finances. This will include levy on stock market transactions and a flat 25 percent tax on Egyptian companies.

Reforms were revised following a suspension on subsidy cuts that drew heavy criticism from the opposition.

Cairo’s index slipped 0.6 percent to its lowest close since Jan. 29.

Heavyweight Orascom Construction Industries lost 1.3 percent, Telecom Egypt slipped 2.6 percent and Orascom Telecom shed 0.9 percent. Egypt Kuwait Holding slumped 4.1 percent after the company reported a 47 percent drop in 2012 profit from a year ago.

In Saudi Arabia, the measure gained 0.2 percent, recovering from a threeweek low.

Large-caps gained with Al Rajhi Bank up 0.4 percent, Saudi Basic Industries Corp (SABIC) gaining 0.3 percent and SABB rising 1.2 percent.

A recovery in oil prices helped sentiment in the largest exporting OPEC member. Brent crude traded near $113 a barrel on Wednesday, edging up from a one-month low.

Elsewhere, UAE investors shifted focus to Abu Dhabi banks, which are set to pay the strongest dividends in the country. First Gulf Bank rose 4.2 percent; the lender will pay a 0.8 dirham cash dividend early next month. Abu Dhabi Commercial Bank gained 3.3 percent.

“Abu Dhabi banks represent safe haven names in the UAE market — the yields on bank stocks are really supportive,” said Ashraf Abu Shakra, head of institutional trading at Abu Dhabi Islamic Bank.

Retail investors traded heavily in property developers. Aldar Properties and Sorouh Real Estate rose 1.3 and 2.7 percent respectively.

Abu Dhabi’s index climbed 1.7 percent, up for a fifth session in the last six and reaching its highest close since November 2009.

Commercial Bank of Qatar slumped 9.9 percent after reaching dividend payment date. National Leasing fell 6.5 percent.

Egypt

The index fell 0.6 percent to 5,516 points.

Saudi Arabia

The index gained 0.2 percent to 6,998 points.

Dubai

The index climbed 0.7 percent to 1,939 points.

Abu Dhabi

The index rose 1.7 percent to 3,056 points.

Qatar

The index declined 0.9 percent to 8,492 points.

Oman

The index gained 0.4 percent to 5,983 points.

Bahrain

The index ticked up 0.1 percent at 1,097 points.