Saudi stocks hurt by telecom sector, Dubai flat

Dubai : Weaknesses in the telecommunications shares pulled down Saudi Stock market yesterday, with Kuwaiti telecommunications firm Zain also declining despite a plan by Oman Telecommunications to become a strategic investor in it.

Saudi Arabia’s index fell 1.1 per cent; Mobily lost 4.1pc. Insurer Malath slid 7.6pc.

Retailer Jarir Marketing closed 0.7pc lower after initially rising when it reported that third-quarter net profit rose 13pc from a year earlier.

Shares in two Kuwaiti companies with telecommunications affiliates in Iraq fell, however, after the Iraqi government said it would seek to impose control over Kurdistan-based mobile phone operators and move their headquarters to the capital Baghdad following last month’s referendum on Kurdish independence.

Logistics firm Agility, a major investor in Erbil-based Korek, fell 1.9pc and Zain, parent of Zain Iraq, sank 3.5pc.

Confirming market rumours, Omantel said it had signed a non-binding letter of intent with a vehicle of Kuwait’s Al Kharafi family to buy a further 12pc of Zain.

That would make Omantel, which bought 9.84pc of Zain in August, a strategic investor in the company and the second biggest shareholder after Kuwait Investment Authority.

But Omantel did not reveal a price for its planned purchase and Zaion, which had jumped 3.4pc on Thursday in response to the rumours, fell back. Omantel rose 1.8pc.

United Arab Emirates-listed shares of Sudanese companies lost steam after soaring 15pc on Sunday in response to the lifting of U.S. sanctions on Sudan. Abu Dhabi-listed Sudatel Telecom fell back 1.5pc after heavy trade and Al Salam Bank Sudan retreated 4.6pc.

The Dubai index was flat although builder Drake & Scull, the most heavily-traded stock, surged 6.2pc. The stock has been rising sharply since last Wednesday after it completed a capital restructuring that involved Tabarak Investment receiving 500 million new shares.

However, GFH Financial Group, the second most active stock, fell 3.5pc.

Egypt’s index fell 0.2pc on the back of a drop in the banking sector, with Commercial International Bank down 1.9pc.

Meanwhile, banking shares boosted Qatar’s stock market as it rebounded from a five-year low. Qatar’s index, which had tumbled as much as 1.6pc on Sunday but finished 0.1pc higher, gained 0.9pc on Monday. That suggested a technical rebound might be starting to erase some of the steep losses.