MIDEAST STOCKS-Dubai's Emaar Properties drags down index for worst loss in 4 wks
* Emaar down 3.3 pct on dilution worry related to convertible
* But analysts say impact would be minor
* Kuwait index holds support on 200-day average
* Saudi's PetroRabigh jumps 9.9 pct again on marketing deal
* Dhofar International, Oman Investment up on M&A
By Nadia Saleem
DUBAI, Dec 16 (Reuters) - Dubai's bourse suffered its largest loss in a month on Monday as investors sold blue chip Emaar Properties in a delayed reaction to the prospect of dilution from a convertible bond. Other regional markets were narrowly mixed.
Emaar dropped 3.3 percent to 7.14 dirhams a day after the company said it would discuss on Tuesday whether to convert the bond into shares, after bond holders asked for the conversion. The developer issued a $500 million convertible bond in 2010, with maturity in 2015.
However, if full conversion takes place at 4.38 dirhams per share, there should only be a slight dilution of 2.2 percent in the stock price, analysts at NBK Capital estimated in a note.
"Emaar has been going up too fast and if the dilution provides a break in that, it's not a bad thing," said Sanyalaksna Manibhandu, senior analyst at NBAD Securities. The stock is up 90.4 percent year-to-date.
Manibhandu also said an early bond conversion would be beneficial for Emaar by allowing a reduction in the firm's interest payments. The bond has a coupon of 7.5 percent.
NBK put Emaar's fair value at 6.88 dirhams, a minimum estimate since two new developments now underway are not included in the calculation.
Dubai's index lost 1.6 percent, falling from Sunday's five-year high.
In Kuwait, the index climbed 0.2 percent from a 10-week low to close at 7,656 points, holding major technical support on its 200-day average, now at 7,648 points.
The market, which has been underperforming the region in recent months, showed little reaction to progress on one of the major projects in the government's economic development plan. National Bank of Kuwait said the country was set to secure $1.43 billion in financing from a consortium of banks for the Az-Zour North Power and Desalination Plant.
"It's a huge deal but it's too late in the year for it to have an impact," said Fouad Darwish, head of brokerage services at Global Investment House. "Many people are talking of a good year to start next month."
Elsewhere, Saudi Arabia's market remained sluggish overall with the main index slipping 0.1 percent as most banks and petrochemical shares weighed. But insurance stocks surged, with Saudi Re up 8.1 percent, as short-term traders turned to that sector in the absence of other cues.
Rabigh Refining and Petrochemical (PetroRabigh) soared 9.9 percent for a second session to a 19-month high, after the firm said it expects 2013 revenues to rise by almost 1 billion riyals ($267 million) as its parents boost their marketing support for its products.
In Oman, Dhofar International Development & Investment Holding rose 1.3 percent after it said it had received board approval for the purchase of a 35 percent stake in Oman Investment & Finance, subject to regulatory approval. OIF gained 2.8 percent, outperforming the overall market which climbed 0.4 percent.
* The index fell 1.6 percent to 3,135 points.
* The index ticked up 0.03 percent to 4,052 points.
* The index declined 0.5 percent to 6,644 points.
* The index slipped 0.1 percent to 8,385 points.
* The index declined 0.5 percent to 10,475 points.
* The index climbed 0.2 percent to 7,656 points.
* The index gained 0.4 percent to 6,761 points.
* The index edged up 0.07 percent to 1,207 points. (Editing by Andrew Torchia)
- Malaysia air probe finds scant evidence of attack: sources |
- Malaysia probes passenger backgrounds for clues on missing flight |
- Confrontation in Ukraine as diplomacy stalls |
- N.Korea using sophisticated means to avoid U.N. sanctions - U.N. report
- Freescale loss in Malaysia tragedy leads to travel policy questions