Shares in Zain Saudi slumped to a record low on Monday amid a slow initial take-up of its rights issue, while Saudi Arabia's index fell to a near three-week low. But Emaar Properties lifted Dubai's bourse. Shares in Zain Saudi sank 4.4 percent to 11.90 riyals. The telecom operator's $1.6 billion rights issue, which closes on Tuesday, has sold only 54 percent of shares available, lead underwriter Banque Saudi Fransi (BSF) said. Parent firm Zain and underwriting banks are set to meet any shortfall. "People are playing it as an arbitrage opportunity, selling it at the current price and buying it at 10 riyals (the rights issue price)," said Ahmed Raza Khan, head of research for asset management at Riyadh-based MEFIC Capital. "Anyone not afraid to lose the percentage holding in their portfolio wouldn't mind selling the stock and subscribing to the rights. After the rights issue closes, there might be some selling pressure again." Zain Saudi's rights issue is being used largely to ease some of its debts. Saudi banks were lower with Alinma Bank down 2.6 percent and Bank Aljazira falling 2.7 percent. The kingdom's main index slipped 0.3 percent in thin trade to 6,641 points, its lowest close since June 27. Reuters
