January 13, 2019 / 1:29 PM / a year ago

MIDEAST STOCKS-Gulf mostly up ahead of results season, Global Telecom plunges in Egypt

    * But trading volumes thin ahead of companies' results
    * Egypt's Global Telecom announces loan conversion
    * Stock plummets 7 pct despite unchanged financial position
    * Saudi Cable Co jumps 10 pct

    By Davide Barbuscia
    DUBAI, Jan 13 (Reuters) - Most Gulf markets closed in
positive territory on Sunday but trading volumes were thin as
investors awaited company results reporting that will begin this
    In Egypt, the index gained 1.2 percent, but Global
Telecom Holding plunged 7 percent after announcing earlier on
Sunday its plan to convert outstanding shareholder loans of
$370.6 million plus accrued interest into equity.
    Global Telecom Holding said its financial position and cash
flow would remain unchanged after the conversion, given this is
a non-cash transaction. But the stock took a hit, plunging to a
month’s low.  
    Earlier this month the firm also said it planned to raise
capital via a rights issue of 11.2 billion Egyptian pounds
($627.10 million), corresponding to the issuance of 19.3 billion
new shares with a par value of 0.58 Egyptian pounds.
    In the Gulf, most major markets closed slightly up, with the
Saudi exchange leading the gains. 
    The index rose 1 percent, lifted by a 5.5 percent
surge by Al Tayyar Travel Group Holding Company, a 2
percent gain by heavyweight Al Rajhi Banking & Investment Corp
 and a 10 percent jump by Saudi Cable Co.
    The latter, a loss-making electrical wires manufacturer, has
been gaining value since Dec. 26, when it leapt after reaching a
final settlement agreement with commercial creditors on 313.6
million riyals ($83.61 million) in loans.
    The Dubai index closed in negative territory,
shedding 0.3 percent, reversing gains made in early trading.
Union Properties lost 1.9 percent, weighing on the
index as it was the stock registering the highest trading
    Dubai’s port operator DP World, which is listed on
Nasdaq Dubai, edged up 0.1 percent, after saying on Sunday it
had agreed to acquire a 71.3 percent stake in Chile's Puertos y
Logistica (Pulogsa) from Minera Valparaiso and other
shareholders associated with the Matte Group.
    DP World said it would offer $502 million for 100 percent
equity ownership and that it expected the deal to be "earnings
accretive in the first full year of consolidation" and would be
financed from existing balance resources.
    The Kuwait exchange, Boursa Kuwait, upgraded Qurain
Petrochemical and Human Soft Holding Co to
the premier market, where the index closed 0.4 percent up
on Sunday. 
 SAUDI       The index         rose 1 pct to 8,292
 ARABIA      points
 DUBAI       The index          edged down 0.3 pct
             to 2,538 points
 QATAR       The index        was little changed at
             10,654 points
 ABU DHABI   The index        added 0.1 pct to
             4,969 points
 EGYPT       The index          gained 1.2 pct to
             13,526 points
 KUWAIT      The index        rose 0.4 pct to 5,473
 OMAN        The index        shed 0.2 pct to 4,304
 BAHRAIN     The index        gained 0.2 pct to
             1,344 points
($1 = 17.8600 Egyptian pounds)

($1 = 3.7509 riyals)

 (Reporting by Davide Barbuscia
Editing by Mark Heinrich)
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