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MIDEAST STOCKS-Qatar's IHG falls on listing, Dubai down on weak earnings, Egypt tests support

Egypt tests support@

* IHG tumbles 13 pct in first day of trade

* DAMAC down as Q2 profit shrinks 21 percent

* DSI down on Q2 net loss, chief executive departure

* GFH slumps despite strong Q2 result

* Saudi's Mobily beats peers on plan to modernise network

DUBAI, Aug 14 (Reuters) - Shares of the first family-owned business to list in Qatar slumped on Monday as they began trading, while weak earnings at several companies in Dubai weighed on the stock index there. Egypt fell for a fifth straight day.

Qatari conglomerate Investment Holding Group tumbled 13 percent from its initial public offer price to 8.70 riyals. Trading volume was about 3.3 million shares, roughly one-third of the total volume in Doha on Monday.

IHG had offered 49.8 million shares, or 60 percent of its share capital, at 10.0 riyals per share plus a 0.1 riyal fee in its IPO during January, making the value of the listing about $138 million.

It is the third flotation in Qatar since 2010; many companies in Qatar and the Gulf are family businesses but so far few have been willing to list, partly because families fear losing control. The Qatar stock index edged down 0.2 percent.

Dubai's index lost 0.8 percent as DAMAC Properties dropped 2.0 percent after reporting a second-quarter net profit of 701.3 million dirhams ($190.9 million), down 20.9 percent from a year ago.

Builder Drake & Scull declined 3.2 percent after it made a second-quarter net attributable loss of 182.7 million dirhams ($49.8 million), widely missing Arqaam Capital's estimate of a loss of 48 million and only slightly narrower than the year-ago loss of 207.6 million dirhams.

The company also said it had terminated the services of its chief executive, Wael Allan. It did not name a new CEO.

GFH Financial, the most actively traded stock, plunged 10 percent despite reporting a second-quarter profit of $30.2 million, a leap from $5.5 million a year ago.

"Fundamentals are in decent shape, and it has a good cash position - what might have driven the price down is disappointment because it did not announce a cash dividend," said one trader.

In Abu Dhabi, Waha Capital fell 2.2 percent after the investment firm reported its second-quarter net attributable profit fell 26.5 percent to 95.6 million dirhams.

Dana Gas lost 4.8 percent ahead of its quarterly results, expected to be announced on Tuesday. The Abu Dhabi index fell 0.5 percent.

The Saudi index edged down 0.3 percent as half of the 12 listed banks fell; the largest by market value, Al Rajhi , fell 0.2 percent.

Telecommunications firm Etihad Etisalat (Mobily), edged up 0.3 percent, outperforming its rivals, after saying it had signed an agreement with Nokia, Huawei and Ericsson to modernise its network.

Mobily expects the agreements to cost about 2.4 billion riyals ($640 million) over the next three years and said funding would come from the company's cash flow and available facilities.

Egypt's index fell 1.1 percent to 13,135 points, with its technical outlook continuing to deteriorate; it fell below its July low of 13,261 points as well as support on its 100-day average, now at 13,167 points.

A head & shoulders pattern formed by the highs and lows since June, and triggered this week, points down to about 12,650 points.

Data released at the end of last week showed annual urban inflation in July rose to 33.0 percent, its highest level in decades, from 29.8 percent in June.

"So far quarterly earnings have not been inspiring, and there is no immediate trigger that could reverse this downtrend," said a trader in Cairo.

Beltone Financial fell 2.6 percent. On Monday its chief executive Bassem Azzab told Reuters that the company would launch a $1 billion investment fund in fixed income instruments in September. Azzab also said Beltone planned to acquire brokerages in Egypt and frontier markets.

On Sunday the company reported a second-quarter consolidated net profit of 13.6 million Egyptian pounds ($767,494) versus a loss of 9.1 million pounds a year ago.

HIGHLIGHTS

SAUDI ARABIA

* The index edged down 0.3 percent to 7,125 points.

DUBAI

* The index dropped 0.8 percent to 3,586 points.

ABU DHABI

* The index lost 0.5 percent to 4,481 points.

QATAR

* The index declined 0.2 percent to 9,192 points.

EGYPT

* The index fell 1.1 percent to 13,135 points.

KUWAIT

* The index edged up 0.2 percent to 6,859 points.

BAHRAIN

* The index decreased 0.3 percent to 1,319 points.

OMAN

* The index edged up 0.2 percent to 4,978 points. (Editing by Andrew Torchia and Pritha Sarkar)