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MIDEAST STOCKS-Rebounding Mobily lifts Saudi; Egypt also up

Saudi Arabia's stock market edged up on Monday, supported by telecommunications operator Etihad Etisalat

DUBAI, Aug 10 (Reuters) – Saudi Arabia’s stock market edged up on Monday, supported by telecommunications operator Etihad Etisalat (Mobily).

Egypt’s bourse also rose slightly.

The main Saudi stock index added 0.6 percent as Mobily surged 5.8 percent. The stock has drawn bargain hunters in the past two days after shedding 17 percent since it resumed trade on Aug. 3. It had been suspended for two months during which it reviewed its earlier financial statements.

Mobily hit six-year lows this month after the telecom operator restated earnings for 27 months on July 30 and posted a second-quarter loss on Aug. 2.

Most Saudi blue chips gained as market sentiment was lifted by data on Sunday showing a jump in consumer spending during the Muslim month of Ramadan. National Commercial Bank, the kingdom’s biggest lender, rose 1 percent.

Egypt’s benchmark index climbed 0.2 percent. Telecom Egypt was one of the top gainers, rising 1.3 percent after it reported a 55 percent rise in second-quarter profit after tax to 378 million pounds ($48.28 million.

Cairo-based Naeem brokerage said in a note that it had expected Telecom Egypt to make 485 million pounds in the quarter, but the miss was largely due to poor results at the company’s affiliate, Vodafone Egypt. It maintained a “buy” on the stock with a target price of 11.00 pounds.

The stock was trading at 8.05 pounds on Monday.