Zain shares hit 10-month closing high

STOCKS RISE: Zain shares climbed after news of vote. (Getty Images)

Zain hit a 10-month closing high after inviting shareholders to vote on removing ownership restrictions at an extraordinary meeting on August 31.

This move could pave the way for existing strategic investors to sell a stake. Zain surged 7.6 percent to its highest close since September 29.

Mohamed Abdulmohsin Al Kharafi & Sons is a major shareholder in Zain and also holds significant stakes in Gulf Cable and Electrical Industries Co and National Investments Co, which rose 5.6 and 2 percent respectively.

Haj & Umrah Services Consortium Co (Mashaer) surged 5.9 percent after it says it has sold Burj al-Makam, a tower in Mecca, for 203 million dinars ($706.1 million).

The index rose 0.3 percent to 7,948 points, its highest close since July 5.

Union Properties suffered its largest decline for nearly six months after the developer reported a second-quarter loss of $62m.

Union Properties plunged 9.6 percent, its biggest one-day decline since February 22, and other real estate stocks retreated, weighing on Dubai's index, which declined for the second session in three.

Emaar Properties fell 3 percent and Deyaar lost 2.6 percent as all 21 active stocks on the index declined, which drops 2.2 percent to 1,882 points.

Abu Dhabi's benchmark ended lower for the second session in three as a sharp decline in oil prices weighed on regional sentiment.

Emirates Telecommunications Corp (Etisalat) slipped 0.5 percent and Sorouh Real Estate dropped 1.6 percent.

Dana Gas climbed 3.4 percent. The firm reported an 11-fold rise in second-quarter profit after making a one-off gain from a stake sale in its Iraqi unit.

The index fell 0.5 percent to 2,853 points.

Qatar's index ended lower for the second session in three as volumes slump to a three-week low.

Industries Qatar was the main drag, falling 3.1 percent after it reported a 55.6 percent drop in second-quarter profit.

Most stocks were flat, with only three other shares moving by more than 1 percent in either direction. These included Qatar Real Estate Co, which rose 1.7 percent in thin trading.

The index slipped 0.5 percent to 7,010 points.

Qatar Telecommunications, which is not included on the Doha benchmark, rose 3.3 percent after saying its second-quarter profit rose 59 percent, buoyed by a one-off gain at its Kuwait unit.

Bahrain's measure fell 0.4 percent to 1,520 points, its second reverse in three sessions.

Ithmaar Bank lost 4.3 percent and accounted for nearly half of all shares traded on the index.

Oman's index ended higher for the third session in four, although gains were minor, with most blue chips declining.

Bank Muscat added 1 percent and Bank Sohar surged 5.7 percent, but Renaissance Services lost 1.5 percent. The index rose 0.1 percent to 6,164 points.

Saudi Arabia's index reversed early losses to end higher for the first session in four, despite only two of its 10 largest stocks advancing.

Saudi Industrial Investment Group was the main support, climbing 3.3 percent, but Banque Saudi Fransi lost 1.3 percent. The index rose 0.3 percent to 5,855 points.

"Saudi fell slightly yesterday, so there was a reaction to oil prices falling, but the Saudi market has more depth than other regional markets and so can better absorb this type of selling," said Shakeel Sarwar, Sico investment bank head of asset management.

"Saudi investors are quite optimistic about the outlook for Saudi companies - results have been encouraging and although oil has fallen, it is still above $60."

Oil dropped more than $3 on Friday to end the week below $68 a barrel.

"Oil has tried and failed to break $72 three or four times and this is becoming a very strong resistance level," said Sunil Dhall, an independent market analyst. (Reuters)

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