Kuwait Shares Advances to 4-Month High as Zain Receives Bid from Etisalat
(Corrects size of gain in second paragraph.)
Kuwait stocks rose to the highest in four months as Zain, the country’s largest mobile-phone company, got a purchase offer for a 46 percent stake, boosting investor sentiment. Emaar Properties PJSC fell in Dubai.
Gulf Cable and Electrical Industries Co., the Kuwaiti maker of electrical equipment, soared to the highest in a year and Kuwait Food Co. jumped 6.3 percent. Zain shares were suspended from trading pending clarification on the offer from Abu Dhabi- based Emirates Telecommunications Corp. The Kuwait SE Price Index increased 0.8 percent to 6,985, the highest since May 24, at the close in Kuwait City. The index rose 6.8 percent in the past three months, its biggest quarterly gain since the one ended March.
The gains are a “spillover from Zain’s news,” said Jasem Al Zeraei, head of institutional sales at NBK Capital in Kuwait.
Etisalat, the largest telecommunications company in the Middle East by market value, today said it offered 1,700 fils a share for 46 percent of Zain. The company yesterday said it made a “conditional offer” for the stake. Zain shares surged 8 percent yesterday to 1,360 fils. Etisalat dropped 0.5 percent to 10.75 dirhams at 1:46 p.m. in Abu Dhabi.
Gulf Cable rose to 1,980 fils, the highest since September 2009. Kuwait Foods, the food-processing company and restaurant operator known as Americana, soared to 1,680 fils, the highest since March 14.
Dubai’s benchmark index fell 0.9 percent, trimming the gain for the quarter to 15 percent. Emaar, developer of the world’s tallest tower, lost 1.6 percent to 3.74 dirhams after it raised $450 million from the sale of convertible notes.
Abu Dhabi’s ADX General Index retreated 0.1 percent, Oman’s MSM30 Index and Qatar’s gauge slipped 0.3 percent. Bahrain’s measure rose less than 0.1 percent. Saudi Arabia’s market was closed for the weekend.
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