MIDEAST STOCKS-IMF rapprochement may lift Egypt’s market; Emaar sets malls IPO range

September 14, 2014
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DUBAI, Sept 14 (Reuters) – Egypt’s stock market may react positively on Sunday to news that the Cairo government will invite an International Monetary Fund mission to visit, while bourses in the United Arab Emirates may continue recovering from last week’s profit-taking, with Emaar Properties setting the price range for the initial public offer of shares in its malls unit.

Egypt will ask the IMF for a long-delayed economic assessment in the hope of improving the country’s image before a February investment conference, the country’s finance ministry said in a statement on Saturday.

The assessment will not necessarily lead to an IMF loan deal, but it is key to maintaining working relations with the global lender and could provide the government with valuable feedback and recommendations.

It is also another step towards rehabilitating Egypt in the eyes of many Western investors. Egypt has not held Article IV consultations, in which IMF experts assess a country’s financial and economic state of affairs, since March 2010.

Meanwhile, bourses in Dubai and Abu Dhabi may continue recovering from a dip last week which analysts attributed to retail investors cashing out in order to take part in the IPO of Emaar’s malls unit.

On Sunday morning, Emaar announced a price range for the IPO of 2.50-2.90 dirhams per share and said it expected to offer 2 billion shares, meaning it would raise up to $1.58 billion. The range was in line with analysts’ expectations.

Both the Dubai and Abu Dhabi markets rebounded last Thursday with Dubai adding 1.0 percent and Abu Dhabi up 1.3 percent. Abu Dhabi’s benchmark, which closed at 5,180 points, faces chart resistance at 5,255 points, its May high.

Qatar’s market may also strengthen after the Doha government asked seven senior figures from Egypt’s outlawed Muslim Brotherhood to leave the country, a step that could help Qatar reconcile with its Gulf neighbours.

Tensions over Qatar’s support for the Brotherhood led Saudi Arabia, Bahrain and the UAE to withdraw their ambassadors from Doha in March.

Oman’s Renaissance Services may gain after sources told Reuters last Thursday that the company had revived plans to list its oilfield services business Topaz, more than three years after pulling a share sale in London. (Reporting by Olzhas Auyezov; Editing by Andrew Torchia)

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

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