Stock market closes 1.7% lower after Dubai developer announces more details of its malls unit IPO
Dubai's bourse underperformed the region on Sunday as investors started cashing out in order to take part in the upcoming initial public offering of Emaar Properties' malls unit, while most other markets edged up.
Dubai's index slid 1.7 percent as Emaar fell 1.3 percent. The developer on Sunday announced more details of its malls unit's initial public offer, which Emaar said had a net asset value of AED33.2 billion ($9 billion). Subscription will open on September 14.
"I think overall this is due to the preparation for the Emaar Malls IPO," said Ali Adou, portfolio manager at The National Investor in Abu Dhabi. "There's a pressure on the market to exit (other stocks) and participate in the offer."
The offer would be one of the largest equity sales in the Middle East since 2008 and Emaar has said it would allocate part of it towards retail investors who dominate Dubai's stock market.
Qatar's bourse fell 0.7 percent after touching an all-time intraday high of 14,053 points and stocks that had led the uptrend became the main drags. Qatar National Bank fell 1.8 percent and Industries Qatar slid 2.1 percent.
Abu Dhabi's bourse rose 0.4 percent. The main supports were First Gulf Bank, Etisalat and Abu Dhabi Commercial Bank which climbed 1.9, 0.4 and 1.2 percent respectively.
Shares in Abu Dhabi National Energy Co (TAQA) fell 2.5 percent. Sources familiar with the matter told Reuters last Thursday that the company may sell assets this year and has picked two international advisers for a possible sale.
Egypt's index rose 0.8 percent to a fresh six-year closing high of 9,723 points. Ezz Steel and developer Talaat Moustafa Group were the chief supports, up 4.9 and 1.6 percent respectively.
Egypt's administrative court last week suspended the annulment of the allocation of 3 million square metres of land to TMG's subsidiary in the Red Sea resort of Ain Sokhna, state-run newspaper Al Ahram reported.
According to the same newspaper, another court in Egypt last Thursday suspended an earlier court verdict levying a 100 million pound ($14 million) fine on Ahmed Ezz, the main shareholder and former chairman of Ezz Steel who had been accused of monopolistic practices.
Saudi Arabia's main index edged up 0.6 percent to 11,136 points, also a six-year closing high. Petrochemical giant Saudi Basic Industries was the main support, adding 1.2 percent.
Insurance companies once again outperformed the market as Mediterranean and Gulf Cooperative Insurance and Reinsurance Co and Company for Cooperative Insurance surged 9.1 and 7.7 percent respectively and the sector's index jumped 2.5 percent.
Rating agency Standard & Poor's said in a report last week it believed the insurance price war in the kingdom appeared to be over and market tariffs for group medical and motor insurance have risen by an average of some 20 percent so far in 2014.