MIDEAST STOCK MARKETS

DUBAI: Middle East stock markets mostly lost ground yesterday, while shares of Oman-based telecommunications companies tumbled after an advisory body to its government proposed taxing them at a higher rate. Oman’s index fell 1.2 percent as Ooredoo Oman and Oman Telecommunications (Omantel) lost 4.8 and 4.0 percent respectively.

Among measures aimed at reducing the 2015 budget deficit, the Shura Council has proposed increasing the royalty rate for telecoms to 12 percent from 7 percent and said the hike should not be passed on to subscribers. “Should the changes come into effect, our fair value for Omantel could decline by 7 percent to 1.42 rials per share from the current 1.53 rials,” EFG Hermes said in a note. Omantel closed at 1.665 rials yesterday. Elsewhere, Qatar’s bourse fell 0.5 percent as shares in Qatar National Bank slid 1.5 percent while Dubai stocks inched down 0.1 percent and Abu Dhabi was nearly flat.

“There is a kind of apathy in the market,” said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi. “People are waiting for news from Vienna.”

Brent crude oil was stable at around $80 a barrel as world powers held a final day of talks on Iran’s nuclear programme and before OPEC members meet to discuss production.

Saudi, Egypt

Saudi Arabia’s main index fell 1.2 percent in a broad pull-back. Petrochemicals were down 0.8 percent and banks lost 1.1 percent as National Commercial Bank , the kingdom’s biggest lender, slid 1.2 percent. Egypt’s bourse lost 1.3 percent with most stocks in the red. Developers Talaat Mostafa Group and SODIC dropped 3.7 and 5.4 percent respectively. South Valley Cement, up 0.9 percent, was one of the few stocks that posted gains after its board last week approved a capital increase and a deal to borrow 1.3 billion pounds ($182 million) to finance expansion.— Reuters