CAIRO/DUBAI Aug 2 Egypt's bourse fell to a
12-week low on Tuesday as jittery investors sold shares ahead of
former Egyptian President Hosni Mubarak's trial, while Gulf
markets were mixed in lukewarm sentiment after a U.S debt deal.
Mubarak, the ousted president, is being tried for his role
in killing protesters during an uprising earlier this year.
Traders said investors are worried that if he doesn't appear in
court the country could erupt in a renewed bout of protests.
"There is selling pressure across the board because
investors are cautious, eyeing what will happen tomorrow and its
outcome," said Chamel Fahmy of Pharos Securities.
The index slumped 2.1 percent, its biggest daily
fall since July 12, ending at its lowest close since May 10.
Large-caps Orascom Construction and Orascom Telecom
lost 2 and 5.1 percent respectively.
UAE markets extended gains for a second day after sentiment
was lifted by a U.S. deal to raise the debt ceiling, signalling
a likelihood the country would avoid a default.
Dubai's index climbed 0.7 percent, touching a
Bellwether Emaar Properties and Arabtec
advanced 1.4 percent each.
"Investors are looking at the global markets before deciding
their short-term investments," said Sachin Mohindra, senior
vice-president, portfolio manager, Invest AD.
Despite the U.S. debt deal, there are still concerns over a
possible downgrade that may weigh on sentiment, he said.
Etisalat helped lift Abu Dhabi's index 0.3
The telecoms operator gained 0.5 percent after its Indian
joint venture partner withdrew a petition filed against the
company before India's Company Law Board.
Saudi Arabia's Kingdom Holding jumped 2.5 percent
an affiliate signed a $1.2 billion deal to build the world's
tallest tower in Jeddah.
Most shares were down on pressure from global markets. The
index slipped 0.4 percent, snapping a two-day rally.
World stocks hit a one-month low on Tuesday as investor
focus shifted back to weak global growth prospects and the euro
zone debt crisis after a U.S. budget deal that will lead to
spending cuts of over $2 trillion..
"We believe as the global picture eases, the names which did
well in 2Q 11 results will benefit... names in petrochemicals,
retail and telecoms," said Farouk Miah, equity research analyst
at Jeddah-based NCB Capital.
Saudi Basic Industries Corp (SABIC) dropped 1.2
percent and Yanbu National Petrochemical Co (Yansab)
shed 1.5 percent.
In Kuwait, the index gained 0.6 percent but
range-bound activity was expected to continue until the market
sees a catalyst.
"No one doubts the economic strength of Kuwait but the issue
is how and when the government will move ahead on the much
anticipated development plan. That would be a major trigger for
the market," said AD Invest's Mohindra.
Investors are waiting for the implementation of a $104
billion development plan to reduce oil dependence.
* The measure dropped 2.1 percent to 4,967 points.
* The index climbed 0.6 percent to 1,536 points.
* The index rose 0.3 percent to 2,646 points.
* The index declined 0.4 percent to 6,443 points.
* The measure gained 0.6 percent to 6,075 points.
* The index slipped 0.4 percent to 5,812 points.
* The benchmark climbed 0.2 percent to 8,429 points.
* The measure decreased 0.4 percent to 1,285 points
(Editing by Firouz Sedarat)