Banks lead Saudi index rebound; Mobinil sale hopes lift Egypt's bourse

Saudi stocks rebounded from a five-day slump on Wednesday as banks rose on strong earnings, and Egypt's Mobinil helped lift the bourse after surging on optimism over a deal for France Telecom to buy most of its shares. The kingdom's index rose for a first session in six, finishing 0.3 percent higher.
Al Rajhi Bank rose 3.9 percent, SABB added 1.7 percent and Banque Saudi Fransi gained 2.7 percent. These banks reported first-quarter net profit growth of between 10 and 18 percent, largely in line with analyst estimates. Saudi Hollandi Bank up 2.5 percent, posted a 21.9 percent rise in net profit and Aljazira Bank rallied 2.8 percent as earnings more than doubled.
In Egypt, the main index added 2.1 percent, ending six days of losses, after mobile operator Mobinil surged on revived optimism that a deal for France Telecom to buy most of its shares would proceed. Orascom Telecom Media and Technology has tentatively agreed to sell most of its stake in Mobinil to fellow shareholder France Telecom. Some investors were concerned following statements by Egypt's communication minister that mobile telecom operators would be required to sell a minimum 20 percent of their shares to Egyptians. But a ministry official said later that the new rules would apply only to new operators.
Mobinil rose 9.9 percent and OTMT climbed 9.6 percent "The news have lifted the telecom sector... There (was) much confusion yesterday," said Pharos Securities' Mohamed Radwan. Among blue chips, Ezz Steel rose 7 percent, and Orascom Telecom climbed 5.5 percent.
In Dubai, the index slipped 0.4 percent, trimming its 2012 gains to 23.5 percent as investors awaited results. Dubai Financial Market and mortgage lender Tamweel, fell 0.8 and 0.7 percent respectively, and Emaar Properties dipped 0.6 percent "Dubai's index formed an interim peak in early March and selling pressure has been mild since then- traders are standing on the sidelines ahead of earnings," said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital.
Abu Dhabi's index lost 0.6 percent to its lowest close since February 23, with Sorouh Real Estate and Aldar Properties falling 1.7 percent each. "Selling is intensifying in Abu Dhabi and the index broke an important support around 2,550. We might see this bearish move continue ... this week and the next," Aboulhosn said. In Oman, industry stocks lifted the index 0.4 percent to a three-week high. Jazeera Steel gained 2.5 percent and Oman Cement rises 5.3 percent.