Kuwait's Zain slumped to a month-low on Wednesday as the deadline for a stake sale to Abu Dhabi's Etisalat neared. Zain fell 1.4 percent to its lowest close since December 9. Major shareholder, the Kharafi group, is leading a consortium selling a controlling stake in Zain to Etisalat.
On Wednesday, Kharafi unit National Investments Co said it had not been notified by the group or Etisalat about extending the January 15 deal deadline. NIC and Etisalat both ended flat. "Trading in blue chips is very low, with many investors unwilling to commit more cash until we hear more on Zain," said a Kuwait trader who asked not to be identified. "A lot of Zain shareholders have already given their shares to the Kharafi consortium and so these can't be traded."
Vodafone Qatar dropped 0.6 percent. Late Tuesday, the operator said its earnings before interest, tax, depreciation and amortisation (EBITDA) was positive for the first time in the third quarter. Its financial year starts on April 1. "Vodafone Qatar is not a widely researched company - yesterday's results were quite good but did not really change longer term expectations," said Martin Mabbutt, Nomura telecoms analyst. "Previous Vodafone Qatar results have caused long term expectations to change, which is important to valuation, but even then the price did not react in a major way."
Abu Dhabi's Aldar Properties and Dubai's Arabtec fell 1.3 and 1.6 percent respectively, declining for a second session since each announced financing plans that are seen as dilative to minority shareholders. Dubai's index dropped 0.4 percent to a 2011 low in its fourth straight decline. Saudi Arabia banks were mixed, with investors waiting for fourth-quarter earnings - due next week - to see if they took further provisions, while lending remains subdued.
The index climbed 0.2 percent to be within a 15 points of Saturday's eight-month peak. "Saudi Arabia is approaching fair value, so there's not a big chance of a rally," said a Riyadh-based fund manager who asked not to be identified. Oman's index rose 0.9 percent to 6,983 points, its biggest gain for five months and highest finish since November 5, 2008. Bank Muscat rose 1.2 percent and National Bank of Oman added 0.9 percent.
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