* Mesaieed priced at almost 3 times fair-value estimates
* Qatar retail investors dominate, institutions stay away
* In Egypt, Sisi presidential bid may not be declared soon
* Cairo index's uptrend may pause around 8,000 points
* Ma'aden surges after Saudi gold deposits found
By Nadia Saleem
DUBAI, Feb 26 Qatar's Mesaieed Petrochemical
Holding soared on its first day of trading on Wednesday, while
Egypt's bourse retreated because of uncertainty over the timing
of a hoped-for presidential bid by Field Marshal Abdel Fattah
Shares in Mesaieed, a unit of state-owned Qatar
Petroleum, rocketed 450 percent from their initial public offer
price to close at 55.0 riyals, after touching an intra-day high
of 73.90 riyals. It was Qatar's first new listing since 2010.
Because the IPO was only open to Qatari investors and a
limited amount of information was released by the company, the
stock has only been thinly covered by analysts. But most
estimates for fair value were around 20 riyals.
In order to ensure success of the $880 million IPO, the
Qatari government made the terms very attractive to investors,
including the promise of bonus shares if people who bought in
the offer keep the bulk of their holding in coming years.
This created a supply squeeze on Wednesday. The vast
majority of trade was by Qatari investors; institutions were
largely absent, having mostly been excluded from the IPO. Some
fund managers said they were deterred by a shortage of
information about the stock.
CI Capital of Cairo sent out an 'overweight' rating on the
stock before trading hours, with a target of just 21 riyals.
"Retail investors just want to own the stock - it has
overheated though, and risen far above the consensus fair
value," said Ahmed Shehada, head of trading at QNB Financial
Trading in Mesaieed did not affect the main Qatari stock
index, which slipped 0.1 percent. According to exchange
rules, a newly listed stock cannot be included in an index until
after six months.
In Cairo, an official government source said Sisi would keep
his post as defence minister in a new government that is being
formed after the old one unexpectedly resigned on Monday.
Mohamed Radwan, director of international sales at Pharos
Securities in Cairo, said investors assumed Sisi - the market's
favourite for president - would not declare a bid for the post
while he remained a minister.
Most investors still think Sisi is likely to run in and win
presidential elections expected sometime in coming months, but
there is disappointment that the announcement of his bid may not
be imminent. The main stock index fell 0.4 percent to
7,998 points, down for a second session since Monday's 65-month
"The market broke the 7,500 level smoothly but it will
struggle to make gains here, and might make up for the missed
correction at that level," Radwan said.
In Saudi Arabia, shares in Saudi Arabian Mining Co (Ma'aden)
rose 4.0 percent to their highest level since April
2013 in heavy trade after a local media report said new gold and
copper deposits had been discovered in the country.
Al Arab News said six gold and two copper deposits were
found, quoting the Saudi Geological Survey. It did not elaborate
on whether or how these deposits might be exploited, but Ma'aden
is active in gold and base metals mining.
Saudi Arabia's index eased 0.04 percent after
Tuesday's five-year high.
Elsewhere, Dubai contractor Arabtec gained 0.6
percent in pre-opening trade before being suspended for the day
for an announcement. Arabtec then denied Monday's Reuters report
that it was in talks to acquire Kuwaiti construction firm
Dubai's index gave up the day's gains to end flat.
* The index slipped 0.1 percent to 11,839 points.
* The index retreated 0.4 percent to 7,998 points.
* The index eased 0.04 percent to 9,059 points.
* The index edged up 0.03 percent to 4,198 points.
* The index climbed 0.5 percent to 4,985 points.
* The index slipped 0.7 percent to 1,378 points.
* The index ticked up 0.03 percent to 7,103 points.
(Editing by Andrew Torchia)