Egypt dips on Mubarak trial; most Gulf mkts down

CAIRO/DUBAI, (Reuters) – Egyptian shares slumped to a near 13-week low as the trial of former President Hosni Mubarak added to the country’s political uncertainties on Wednesday, while Abu Dhabi Commercial Bank lifted the emirate’s index after it swung to profit.

Most Gulf markets ended lower, while trade was muted in Cairo as most traders remained transfixed to television screens, following trial updates.

Mubarak is the first Arab ruler to appear in court since uprisings swept the region, and analysts say it is still unclear if the trial will lead to reconciliation or drag.

“For those of us in markets, uncertainty is always an excuse to sell, whether it’s justifiable or not,” said Akram Annous, MENA strategist at Al Mal Capital in Dubai.

“Markets want a smooth trial and an uncontroversial outcome, but until then they are likely to be on edge as this drama unfolds,” he added.

The benchmark index slid 0.9 percent to its lowest level since May 8. The index has fallen 6.5 percent since July 17, mainly on concerns over political uncertainty.

Mobinil dropped 2.1 percent. One of the lawyers at Mubarak’s trial called for a legal representative from Egypt’s three main telecoms firms to come to court to talk about the communications cut during the uprising that overthrew Mubarak.

Egypt’s shares were also under pressure after world stocks fell towards five-month lows on Wednesday as worries grew that fiscal cutbacks and stagnating output would prolong a global economic slowdown and aggravate Europe’s debt crisis.

In the UAE, Abu Dhabi Commercial Bank (ADCB) helped lift the emirate’s index , which rose by 0.2 percent on its third day of gains.

ADCB climbed 0.3 percent, taking its gains this year to 49 percent. The lender booked a $357 million profit from the sale of a stake in Malaysia’s RHB Capital and reported quarterly earnings $364.9 million).

Most Gulf markets fell on the global concerns.

“Volumes are low but the main reason for the pressure in the market is the perception that the economic growth globally will suffer,” said Youssef Kassantini, a Saudi-based analyst.

Saudi Arabia’s benchmark shed 0.3 percent, stretching its 2011 losses to 3 percent.

The index is likely to continue in the downtrend for the next two week but stay relatively range-bound, Kassantini added.

Shares fell across the board, with telecom firm Zain Saudi leading decliners by turnover, slipping 0.8 percent.

Bellwether Saudi Basic Industries Corp (SABIC) lost 0.2 percent, a the sector’s index fell 0.5 percent.

Dubai’s index down 0.6 percent, as telecom operator du shed 0.3 percent despite posting an estimate-beating quarterly net profit.

“We need to see foreign buying coming through, which is fragile right now,” said Sachin Mohindra, senior vice-president at Invest AD.

“High net worth individuals are very sensitive to the international developments.”

Oman’s index slipped 0.9 percent and Qatar dropped 0.4 percent.

TUESDAY’S HIGHLIGHTS

EGYPT

* The measure fell 0.8 percent to 4,923 points.

ABU DHABI

* The index rose 0.2 percent to 2,650 points.

SAUDI ARABIA

* The index slipped 0.3 percent to 6,424 points.

DUBAI

* The index declined 0.6 percent to 1,527 points.

OMAN

* The index slipped 0.9 percent to 5,758 points.

QATAR

* The benchmark fell 0.4 percent to 8,398 points.

KUWAIT

* The measure eased 0.1 percent to 6,068 points.

BAHRAIN

* The measure eased 0.02 percent to 1,284 points.