Saudi Arabia’s stock market edged down in early trade on Monday because of weak consumer stocks and oil prices, while Egypt pulled back broadly after a rally prompted by announcements of large projects at an investment summit over the week-end.
The main Saudi index fell 0.5 per cent and food makers Savola Group and Almarai were among the main drags, falling 1.1 and 1.7 per cent, respectively.
Brokerage NBK Capital on Monday reiterated a “hold’’ recommendation on Almarai as the stock, now at 86.50 riyals, trades above its fair value estimate of 75.00 riyals. Savola is Almarai’s biggest shareholder.
Meanwhile, the petrochemicals sector slipped 0.2 per cent as Brent oil fell towards $54 per barrel on persistent oversupply concerns.
Egypt’s market fell 1.2 per cent in a broad decline, after rising in the two previous sessions as the Cairo government said it had secured tens of billion of dollars in fresh investments at a summit in Sharm el-Sheikh.
Also, some investors may be cashing out to take part in the secondary public offer of food maker Edita, which announced an indicative price range on Monday.
Sources told Reuters earlier this month that Edita was seeking to raise 2 billion Egyptian pounds ($262 million) from its offer on the Cairo bourse, and that trading was expected to begin in April.