MIDEAST STOCKS-Saudi, Egypt edge down in early trade after oil weakens
DUBAI, Feb 7 Stock markets in Saudi Arabia and
Egypt slipped in early trade on Sunday, erasing some of their
gains in the previous session after oil prices reversed and
global markets sold off at the end of last week.
In Riyadh, the index slid 0.5 percent in thin trade, dragged
down by the petrochemical sector. Saudi Arabia Fertilizer
(SAFCO) and Yanbu National Petrochemical were each down
more than 1.5 percent.
But some shares were faring better because of positive
corporate actions. Saudi Cement rose 2.0 percent after the
company recommended a dividend distribution of 3.00 riyals per
share for the second half of 2015, versus a proposed dividend
of 2.5 riyals a year earlier.
Egypt's index slid 0.3 percent, erasing some of the previous
session's 2.2 percent gain. On Thursday the index triggered a
minor bullish right triangle formed by the highs and lows since
mid-January and pointing up to around 6,750 points.
Orascom Telecom tumbled as much as 5.0 percent in the first
minutes of trade. But the conglomerate's plan to form a
financial power centre with the anticipated acquisition of CI
Capital from Commercial International Bank is a net positive in
the long run, said a note by Sigma Capital.
Palm Hills traded up 1.7 percent after Egypt's second-largest
listed property developer reported a 128 percent jump in
fourth-quarter net profit to 203.5 million Egyptian pounds
($26 million). It also proposed its first cash dividend, 0.15
pound per share, and a bonus share issue of one for 20.
"Revenues stood at 957 million Egyptian pounds, beating our
forecast of 664 million Egyptian pounds, on higher-than-
expected deliveries of villas, apartments and chalets," said a
note by Cairo-based Naeem Brokerage.
In 2016, Palm Hills is expected to have a strong year in terms
of both off-plan sales and deliveries, the note added.
(Reporting by Celine Aswad; Editing by Andrew Torchia and
Mark Potter)
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