Orascom falls as MTN drops call

The shares of Egypt's Orascom Telecom fell sharply yesterday after the company announced it would not be acquired by MTN Group, the largest mobile operator in Africa. The deal would have created the world's third-largest mobile operator. Orascom dropped 5.1 per cent to 5.54 Egyptian pounds in Cairo, while MTN climbed 4 per cent to 105.85 rand in Johannesburg, indicating investors were concerned about the steep price.

"This is major news," said Alfred Fayek, the managing director of equity sales in the MENA region for EFG-Hermes in Dubai. Egypt's benchmark index lost 1.6 per cent to 6,243.09. The Dubai Financial Market General Index rose 0.1 per cent to 1,514.23 on very thin volumes, continuing a pattern from earlier in the week of little enthusiasm from foreign investors. Financial services fell the most, with Dubai Islamic Bank retreating 0.9 per cent to Dh2 a share.

The Abu Dhabi Securities Exchange General Index eased 0.2 per cent lower to 2,519.92, led by the banking sector. Abu Dhabi Commercial Bank was 0.6 per cent down at Dh1.53; First Gulf Bank lost 0.3 per cent to Dh13.95; and National Bank of Abu Dhabi slipped 0.6 per cent to Dh9.99. Elsewhere in the region, Kuwait's measure fell 0.4 per cent to 6,639.80 and Bahrain's main index declined 0.7 per cent to 1,401.12.

Oman's bourse was up 0.1 per cent to 6,122.01 and Qatar's QE Index added 0.7 per cent to 6,853.63 The Saudi Tadawul All-Share Index was closed for the day. [e-mail]