Arabtec lifts Dubai bourse; political woes weigh on Egypt's index

Builder Arabtec surged on Tuesday, lifting Dubai's bourse to a four-week high after Abu Dhabi fund Aabar nearly doubled its stake, while growing political tensions weighed on Egypt's bourse. Shares in Arabtec jumped 15 percent to finish at their highest price level since March 5.
Abu Dhabi government-owned fund Aabar bought a 5.1 percent stake through a real estate unit. It already owned 5.3 percent through an energy unit. "The share price movement is linked to the shareholding structure and speculation on whether Aabar will continue to increase its stake," said Sebastien Henin, portfolio manager at The National Investor. "It's not about valuations right now."
Dubai's index climbed 2.4 percent, its largest daily gain in three weeks, to its highest close since March 5. Buying momentum picked up in other stocks with blue chips seeing more interest. Emaar Properties gained 3.6 percent and Dubai Financial Market rose 6 percent.
"The Arabtec story could help the market further and then the results come in... we are waiting for new catalysts. There are some good hints in Dubai for first-quarter numbers. That's why we didn't have a big correction after the rally (that started in mid-January)," said Henin.
Egypt's index fell 1 percent as a more assertive stance by the Muslim Brotherhood, the dominant political force, deepened uncertainty over a planned transition to civilian rule. A rally that made Egypt the world's best performing stock market at the start of the year was built partly upon optimism that the Brotherhood and the country's army rulers were working to avoid a showdown before a presidential vote starting in May. The index has dropped 10 percent since a strong rally ran out of steam in early March and traders say local retail investors have been selling equities since the weekend.
Omar Darwish at CIBC brokerage said foreign investors, who were net buyers of Egyptian stocks during the rally, had switched to being net sellers. Orascom Telecom lost 3.1 percent and Talaat Moustafa Group falls 0.8 percent. In Saudi Arabia, the index climbed for a fifth session, rising 0.3 percent to a fresh 42-month high. Yamama Cement climbed 2 percent after it kicked off earnings season, reporting a 54 percent earnings rise. Saudi Cement rose 3.2 percent and Yanbu Cement gained 2.6 percent. In Qatar, the index slipped 0.2 percent, snapping an eight-session rally which took it to a 12-week closing high.