DUBAI: Kuwait’s Wataniya rose to a two-month high yesterday after Qatar Telecom offered to buy remaining stake in the telco for $ 2.2 billion, while Gulf markets were mixed in muted trade post-Ramadan.
Shares in Wataniya jumped 4.6 percent to 2.3 dinars on the Kuwait bourse, their highest close since May 19 as it resumed trading after a two-month hiatus.
Qtel already owns 52.5 percent of the firm and is offering 2.6 dinars per share for the stake.
“Institutions, foreign and local and retail investors, are all keen to make a quick buck on this deal. It will create volume in the market because people making money on the rally will be putting it back in the market,” said Fouad Darwish, head of brokerage at Global Investment House.
“We will not feel the full impact of the rally because of the timing... it’s the last two days of the week and many people are not in the market.”
Kuwait’s index rose 0.8 percent, making its fifth straight gain since last week’s eight-year low.
The bourse has booked losses for three consecutive months since May.
In Doha, Qatar Telecom’s shares edged up 0.5 percent, extending gains since it made the Wataniya offer.
Doha’s index advanced 0.1 percent to its highest close since May 28. The market has been rallying in recent sessions as local retail investors look for short-term gain in small- to mid-caps. Focus shifted to larger caps on Wednesday with Industries Qatar rising 0.9 percent.
Elsewhere, investors booked recent gains in Dubai, with the index closing 0.3 percent lower, trimming year-to-date gains to 16.5 percent.
Bellwether Emaar Properties shed 0.9 percent, contractor Arabtec lose 1.1 percent and logistics operator Aramex closed 1.1 percent lower.
In Abu Dhabi, the index sustained gains for a ninth successive session, climbing 0.5 percent to its highest close since March 21. Its main support was Etisalat, which rose 1.4 percent.
“We’re seeing retail traders grabbing opportunities before liquidity kicks in post-Eid holiday,” said Firass Yaish head of business development at Trust Capital. “There wont be much action on the market this week because people are still on holiday.”
Oil eased below $ 114 a barrel as investors held out hope that Europe would overcome its debt crisis while Middle East tension kept the potential for supply disruption in focus.
