Zain rises despite Q3 profit dive, Kuwait up

Shares in Zain rose in early trading despite Kuwait's largest telecoms firm reporting a 53 per cent drop in third-quarter profit. The stock rose 2 per cent. Zain made $144 million in the three months to September 30, less than half the amount forecast by two analysts polled by Reuters. "We believe that Zain has valuable assets with a scarcity premium attached for any player looking to expand in the Middle East and Africa," says a note from Shuaa Capital. "However, the sale process has been stretching. This uncertainty has likely undermined the performance of the company in the quarter." Shuaa maintains its sell recommendation on Zain, the note said. Zain's shares are down 36 per cent since hitting a 50-week high on Sept 7, the day before major shareholder the Kharafi group announced it had agreed to sell a 46 percent stake to a consortium that includes India's Bharat Sanchar Nigam Ltd (BSNL). Progress on the issue since then has been slow, weiging on investor sentiment in the Kuwaiti market. The index inches 0.2 per cent higher, to 6,934 points.