UPDATE 2-MIDEAST STOCKS-Telecoms boost Egypt, drag down Saudi Arabia – Reuters


(Updates with Saudi Arabia, Egypt open)

DUBAI Feb 23 (Reuters) – Telecommunications stocks boosted
Egypt’s equity market on Monday after French operator Orange
said it would increase its stake in local firm Mobinil, while
two major phone operators in Saudi Arabia fell as the regulator
cut the fees they can charge.

Egypt’s benchmark stock index rose 1.9 percent as
Orascom Telecom Media and Technology (OTMT) surged 5.8
percent, while telecommunications operator Mobinil,
which is not part of the benchmark, jumped its daily 10 percent
limit.

French telecommunications firm Orange and OTMT
said on Monday that OTMT would sell its 5 percent stake in
Mobinil to Orange for about 209.6 million euros.

Most other stocks in Cairo also rose.

Meanwhile, Saudi Arabia’s main index slipped 0.3
percent as dominant mobile phone operators Saudi Telecom
and Mobily dropped 4.4 and 2.7 percent
respectively.

The kingdom’s telecommunications regulator has slashed call
termination fees by 40 percent, a move which is seen as mostly
benefiting Zain Saudi, the smallest of the country’s
three mobile network operators, whose shares jumped 2.5 percent.

The regulator has cut these fees to 0.15 riyal per minute
from 0.25 riyal, it said in a statement on its website. It did
not say whether this would be with immediate effect.

(Reporting by Olzhas Auyezov; Editing by Andrew Torchia)

UPDATE 2-MIDEAST STOCKS-Telecoms boost Egypt, drag down Saudi Arabia – Reuters}

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