Orascom Construction Industries (OCI) gained yesterday ahead of an expected demerger approval, helping lift Egypt’s bourse, while most Gulf markets fell as falling oil prices and global shares weighed.

Shares in OCI, Cairo’s biggest listed company, gained 3.4%, with the main index up 1.1%. A May 17 shareholders meeting is to vote on a proposal to split the firm’s construction and fertilisers businesses into two companies.

“The potential in OCI is what pushed the move upwards along with CIB maintaining its targets,” said Hisham Metwalli of Arab Finance Brokerage. “It is mostly short-term trading awaiting what will happen on 23-24 May.”

OCI said the long-planned demerger would widen the investor base of the two new entities, make their management more flexible and make their credit profile more attractive to lender.
Commercial International Bank gained 1.8% ahead of its results tomorrow. The bank is expected to post strong first-quarter numbers.

EFG Hermes rose 1.5% in heavy trade, resuming trade after a one-day suspension. It said on Friday it sealed a deal with Qatar’s QInvest to form a region-wide investment bank.
In Saudi Arabia, the index fell 0.3%, down for a third session after a drop in oil prices.
Petrochemical and banking bluechip stocks led the decline.

Heavyweight Al Rajhi Bank dipped 0.7% and Bank AlBilad shed 1.4%. Bellwether Saudi Basic Industries Corp (Sabic) slipped 0.3%, while small-cap Nama Chemicals dropped 9.9%.

“The market was much more stable today (Monday) but the impact of lower oil prices came through to petrochemicals,” said Muhammad Faisal Potrik, research analyst at Riyad Capital.
“As long we are around the $ 100 mark, we should be OK. Sentiment will continue to be hit by external factors but there are attractive stocks out there in terms of valuations, especially in petrochemical and banks sectors.”

Oil dropped to four-month lows below $ 113 a barrel yesterday, on worries that election results in Greece and France could thwart efforts to contain the eurozone debt crisis and after weak US jobs data prompted concern about oil demand growth.

Other Gulf markets also took cues from decline in global shares.

In UAE, Abu Dhabi’s benchmark fell 0.3% to its lowest close since February 16.
Elsewhere in the country, budget-carrier Air Arabia helped lift Dubai’s bourse by 0.3%, which halted an eight-session losing steak.

Shares in Air Arabia rallied 1.9% after the Sharjah-based carrier posted estimate-beating earnings.

Local markets are expected to be muted in coming weeks as summer rolls in.
Elsewhere in the Gulf, Dubai’s index climbed 0.3% to 1,564 points; Kuwait’s index gained 0.3% to 6,492 points and Oman’s measure fell 1% to 5,792 points.