Kuwait's Zain may rise after Q2 beats estimates

Firm reported a 14 percent fall in its second-quarter net profit on Sunday
By Reuters
Mon 29 Jul 2013 10:16 AM

Kuwaiti telecommunications operator Zain may gain on Monday after it beat estimates for second-quarter earnings.

The firm reported a 14 percent fall in its second-quarter net profit on Sunday to 61 million dinars ($214 million), but that exceeded analysts' average forecast of 55.35 million dinars.

The Kuwait market in general may also gain moderate support from the results of Saturday's elections, which appear to have produced a parliament that is likely to cooperate with the cabinet on economic development plans.

In Egypt, OCI NV said it expects to own more than 97 percent of Cairo-listed affiliate and blue chip Orascom Construction Industries after a tender offer expired on Sunday. This seems likely to lead to the delisting of OCI, Egypt's largest stock by market value.

OCI shares dropped 5 percent on Sunday after the offer expired, the main drag on the benchmark index, which slipped 0.7 percent.

Political tensions and the risk of further violence in Egypt remain high, with several thousand supporters of ousted president Mohamed Mursi marching on a military facility in Cairo. Nevertheless, market movements on Sunday showed most investors will not be deterred by violence as long as it does not derail the country's transition back to civilian rule.

The tone in Asian markets is soft; the yen rose to a one-month high against the dollar as investors braced for another round of disappointing economic news out of China, knocking Japanese stocks to four-week lows and pulling down regional markets.

Brent oil futures are little changed above $107 a barrel on Monday.

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