Mideast Stocks: Banks lift Saudi, Dubai continues to rally on Emirates NBD deal
Emirates NBD hovers around 11-year high
Saudi Arabia's stock market marked its ninth session of gains on Thursday, led by banking shares, while Emirates NBD's deal to buy Turkey's Denizbank lifted Dubai's main index.
The Saudi index was up 0.9 percent, led by a 3.1 percent rise in Al Rajhi Bank and a 2.3 percent gain in the largest lender National Commercial bank.
Al Rajhi Bank's shareholders approved an increase in its capital to 25 billion riyals ($6.7 billion) from 16.25 billion riyals through issuing bonus shares.
Sahara Petrochemical rose 0.4 percent after it announced an amendment to the proposed merger of equals with Saudi International Petrochemical Company (SIPCHEM).
The company said CEO Saleh Mohammed Bahmdan will be appointed as chief executive of the combined company, and SIPCHEM's Chief Executive Abdullah Saif Alsaadoon will be appointed chief operating officer of the group. SIPCHEM was up 0.3 percent.
Middle East Healthcare added 2.5 percent, a day after the company said its Saudi German Hospital project was 84 percent complete as of March 31, and that it expects its completion by June.
The Dubai index closed 0.6 percent higher, with Emirates NBD ENBD.DU adding 4 percent, trading around its highest level in more than a decade.
On Wednesday, the bank said it will buy Denizbank for 15.48 billion lira ($2.7 billion) from Russia's state-owned Sberbank. The offer is a roughly 20 percent discount to a previously agreed price after a steep fall in the Turkish lira.
Shuaa Capital jumped 3.8 percent. Abu Dhabi Financial Group (ADFG) is set to take over Shuaa in a reverse merger, two sources familiar with the matter told Reuters on Tuesday.
But Emirates Integrated Telecommunications (du) DU.DU slipped 2.8 as the stock traded ex-dividend.
The Egyptian blue-chip index gained 0.3 percent with Global Telecom Holding adding 3.7 percent and Heliopolis Co For Housing and Development rising 5.8 percent. On Tuesday, Heliopolis' board approved the sale of multiple pieces of land.
Orascom Investment Holding inched up 0.7 percent after its full-year net profit nearly doubled.
In a separate bourse filing, the firm said that it had negotiated with shareholders to buy 100 percent of the issued share capital of Nile Sugar for 3.59 billion Egyptian pounds ($207 million).
In Qatar, the index gained 0.3 percent, with Qatar Gas Transport (Nakilat) jumping 4.5 percent to its highest in over two years.
CI Capital on Tuesday raised its target price on Nakilat to 24 riyals ($6.59), rating the stock as 'overweight'.
Abu Dhabi's index slid 0.3 percent with Abu Dhabi Commercial BankADIB.AD declining 3.2 percent.
Abu Dhabi Islamic Bank outperformed with a 2.5 percent rise. The bank denied that it was in merger talks with First Abu Dhabi BankFAB.AD after a news report said the emirate was considering combining them. First Abu Dhabi edged 0.1 percent lower.
The Kuwaiti and Omani markets were closed for public holidays.
($1 = 5.6420 liras)
($1 = 3.6405 Qatar riyals)
($1 = 3.7505 riyals)
($1 = 17.3100 Egyptian pounds)
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