MIDEAST STOCKS-Dubai pulls back further; Ezz Steel climbs in Egypt

September 8, 2014

(Updates with markets open)

DUBAI, Sept 8 (Reuters) – Dubai’s bourse continued to slide in early trade on Monday after its main index failed to break through chart resistance and investors started preparing for the initial public offer of shares in Emaar Properties’ mall unit.

The Dubai index fell 0.7 percent and hovered around the psychologically important 5,000 point mark as most stocks were in the red.

Prompting some investors to cash out, Emaar, Dubai’s largest listed developer, said on Sunday that subscriptions for the malls unit’s IPO would open on Sept. 14.

The offer would be one of the largest equity sales in the Middle East since 2008, and Emaar has said it will allocate a substantial portion of the shares to the retail investors who dominate Dubai’s stock market.

Abu Dhabi’s index slipped 0.2 percent as heavyweight First Gulf Bank edged down 0.5 percent. Qatar’s benchmark was nearly flat.

Egypt’s market, on the other hand, edged up 0.3 percent shortly after opening on the back of Ezz Steel, which jumped 2.8 percent.

Cairo-based Naeem Brokerage said in a note on Monday that, in response to a request from the brokerage, Ezz Steel had denied rumours that it was considering a capital increase or a rights issue to fund a new facility.

The market’s rise also followed news that foreign direct investment into Egypt doubled to over $6 billion in the financial year that ended on June 30. (Reporting by Olzhas Auyezov; Editing by Andrew Torchia)

  • Finance
  • Investment & Company Information
  • Emaar Properties
  • Dubai

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