Most Gulf bourses down; EFG-Hermes up on QInvest talks

27/04/2012 06:40 AST

Most Gulf bourses fell ahead of the weekend as investors, eyeing a string of on target earnings results, booked recent gains, while Egyptian investment bank EFG Hermes surged after a report it had finalised talks to sell a stake to Qatar’s QInvest.

In the UAE, Dubai’s benchmark fell 0.5% to 1,652 points and remains stuck in a sideways trend as it consolidates gains from an early-year surge. It is up 22.1% in 2012.

Abu Dhabi’s benchmark declined 0.2%, halting a three-day rally. Abu Dhabi National Energy was the main drag, dropping 3.8%.

In Egypt, investment bank EFG Hermes jumped 8.9% after a newspaper reported that it had finalised talks to sell a 60% stake to Qatar’s QInvest.

Independent Egyptian newspaper Shorouk said on Wednesday the planned partnership between the two companies would include securities brokerage, asset management and investment banking operations, but not EFG Hermes Private Equity.

In a statement yesterday, EFG said the negotiations, which were still under way, “will result in the creation of the largest investment bank in the Arab World, Africa, Turkey, South and South East Asia”.

It was possible that QInvest would take a majority stake in the new bank, it said. Egypt’s main share index gained 0.5 0.2%.

Elsewhere, Oman’s bourse made its largest one-day loss in four weeks, extending declines from last week’s nine-month peak as profit-taking accelerates.

The index ended 1.3% lower.

Elsewhere, Kuwait Finance House dropped 1.4%. Its first-quarter profit fell to 20mn dinars from 22.6mn dinars in the same period of last year, it said yesterday.

Kuwait’s index ended flat 6,337 points.

Bahrain’s measure declined 0.2% at 1,145 points.

Gulf Times