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MIDEAST STOCKS-Bourses fall as China pressures oil and equities
August 12, 2015 / 1:30 PM / 2 years ago

MIDEAST STOCKS-Bourses fall as China pressures oil and equities

* Middle East markets hit by global run on equities
    * Egypt the worst performer
    * Most Gulf blue chips fall despite steadier oil
    * Dubai's Drake & Scull drops after poor Q2 results

    By Olzhas Auyezov
    DUBAI, Aug 12 (Reuters) - Middle East stock markets fell on
Wednesday in line with global equities that, along with
commodity prices, came under pressure from the continuing
devaluation of the Chinese yuan.
    Even oil's midday rebound failed to stop the sell-off and
Egypt, which unlike Gulf states also faces pressure on its
currency, was hit the most.
    The Cairo index dropped 2.1 percent, with most
stocks in the red. Non-Arab institutional investors were the
main net sellers, according to bourse data.
    Commercial International Bank, the country's
biggest listed lender, dropped 2.7 percent.
    Property developer Talaat Moustafa Group and
investment bank EFG Hermes both lost ground despite
positive earnings announcements.
     Talaat Moustafa fell 3.5 percent after reporting a 12
percent increase in first-half profit, while EFG Hermes dropped
by 3.4 percent after second-quarter results showed net profit up
38 percent, excluding a non-recurring gain from the sale of its
stake in developer SODIC.
  
    "Today's sell-off was mostly due to China," said Harshjit
Oza, an analyst at Cairo-based Naeem brokerage. "All emerging
markets went through some correction because of that."
    He added that slower growth of China's economy could hit
traffic in the Suez Canal, which is an important foreign
currency earner for Cairo.
    Saudi Arabia's main index dipped by 0.6 percent,
with most blue-chip stocks in negative territory.
    Petrochemicals heavyweight Saudi Basic Industries Corp
(SABIC), the shares of which are sensitive to oil
prices, slipped 0.3 percent.
    The sell-off also affected other sectors. The kingdom's
biggest listed foodmaker, Savola Group, fell 2.6
percent and National Commercial Bank, the biggest local lender,
was down 0.8 percent.    
    Dubai's index fell 1.2 percent, with Emaar
Properties and Dubai Islamic Bank down 1.6
percent and 0.8 percent respectively.
    Construction and engineering company Drake and Scull
 tumbled by 3.7 percent after it reported a 60 percent
decline in second-quarter profit attributable to shareholders.
The company said sentiment in the sector was bearish and its
margins had come under pressure because of delays on several
projects.
    Abu Dhabi's bourse lost 1 percent, with oil and gas
company Dana Gas down 1.7 percent.
    Qatar's index inched 0.1 percent lower. Gulf
International Services, which provides drilling rigs
and other services for the oil and gas sector, was the biggest
faller, dropping by 3.4 percent.
                                        
    WEDNESDAY'S HIGHLIGHTS
    
    SAUDI ARABIA
    * The index fell 0.6 percent to 8,708 points.
    
    DUBAI
    * The index fell 1.2 percent to 4,022 points.
    
    ABU DHABI
    * The index lost 1.0 percent to 4,766 points.
    
    QATAR
    * The index slipped 0.1 percent to 11,773 points.
    
    EGYPT
    * The index dropped 2.1 percent to 7,912 points.
    
    KUWAIT
    * The index slipped 0.1 percent to 6,286 points.
    
    OMAN
    * The index fell 1.3 percent to 6,321 points.
    
    BAHRAIN
    * The index added 0.2 percent to 1,336 points.


($1 = 7.8250 Egyptian pounds)
    

 (Editing by David Goodman)

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