DUBAI Oct 8 (Reuters) – Egypt’s bourse may resume rising on
Wednesday after dipping on pre-holiday profit-taking at the end
of last week, while weak demand for Zain Bahrain’s initial
public offer indicates the Manama bourse may remain range-bound
in low volumes.

Egypt’s main index hit a six-year closing high of
9,811 points on Sept. 30, boosted by ambitious state investment
plans, fresh deals with foreign energy firms and positive
corporate news.

But it retreated in the two following sessions and closed at
9,727 points last Thursday as investors across the Middle East
prepared for the Muslim holiday of Eid al-Adha.

Falling oil prices, which will reduce pressure on Egypt’s
balance of payments, may now encourage fresh buying of stocks.
Brent crude sank $1.18 to $90.93 a barrel, its lowest
level in more than two years, in Asia on Wednesday.

Also, a purchasing managers survey released on Tuesday
showed business activity in Egypt expanded at a near-record pace
in September, with a nascent economic recovery encouraging
companies to hire for the first time in nearly 2-1/2 years.

Bahrain’s bourse also reopens on Wednesday after its
Eid break, but with a less positive backdrop. In the first IPO
on the market since 2010, telecommunications firm Zain Bahrain
IPO-ZAIN.BH sold just over a third of the offer to the public,
reflecting weak demand.

The kingdom’s bourse suffers from poor liquidity, with
trading activity the lowest in the Gulf region this year. Its
benchmark has traded within a narrow range around 1,460 points
for eight weeks.

The Saudi Arabian, Kuwait, Qatar and Oman markets remain
closed for Eid and will reopen next week.

The global market environment is weak; Asian stocks fell on
Wednesday morning because of worries about waning global growth.
On Tuesday, the Dow fell 1.6 percent, while the SP 500
lost 1.51 percent and the Nasdaq 1.56 percent.

(Reporting by Olzhas Auyezov; Editing by Andrew Torchia)