Gulf stock markets lose ground

Shares in the oil services firm surged 7.8 percent following three days of large losses after saying it uncovered fraud at its unit Topaz, and saw a 77-percent drop in first-half net profit.

It accounted for about half of all shares traded on the index.

The company’s chief executive told analysts on Thursday it will consider an initial public offering (IPO) for its marine business first. It had pulled a much-anticipated IPO of its Topaz unit in March, citing valuation concerns and growing regional unrest.

The benchmark ended 0.7 percent higher, trimming its 2011 losses to 4.8 percent.

Other stocks are clawed back ground with heavyweight Bank Muscat climbing 1 percent, Oman Flour Mills rising 1.7 percent and telecoms operator Nawras gaining 0.9 percent.

In Egypt, Mobinil jumped 5.2 percent, adding to a 10 percent surge a day earlier on speculation over potential changes in its shareholder structure.

Cairo’s main index rose 0.4 percent by the close.

Magnate Naguib Sawiris said on Wednesday he had no plans to sell shares in Mobinil, his company’s mobile phone joint venture with France Telecom.

Mobinil said on Thursday the firm had not received notice from either Sawiris or France Telecom of any move by Sawiris to sell his stake in the company to the French group for 160 Egyptian pounds per share.

Orascom Telecom, Mobinil’s Egyptian shareholder, dipped 1.2 percent.

“The rumour on Mobinil is not credible and, now that Sawiris denied it, there’s no rumor any more, so we just don’t know what’s going on,” said a trader at CIBC.

Commercial International Bank rose 2.4 percent, the fourth-biggest gainer on the 30-company index.