DUBAI: Egypt’s index marked its biggest gain in nine days yesterday after protests marking the second anniversary of the overthrow of former president Hosni Mubarak a day earlier were smaller and less violent than expected.
Most other Gulf markets also rose, but Dubai’s main index continued its retreat from Sunday’s three-year high.
Demonstrators demanding the departure of President Mohamed Mursi clashed with police outside his palace on Monday, but these appeared more subdued than previous bouts of anti-Mursi unrest.
“Retail appetite was the main driver for the market today - everybody was cautious yesterday and thought there would be further escalation of violence but it was not as bad as expected,” said Mohamed Radwan, director of international sales at Pharos Securities. Cairo’s index rose 1.1 percent in its biggest gain since Feb. 3 and eighth advance in the past 10 sessions.
Palm Hills Development and El Saeed Contracting Co climbed 2.4 and 3.9 percent respectively. Citadel Capital added 1 percent.
In Saudi Arabia, the index climbed 0.4 percent to a near two-week high. Banks and petrochemical stocks supported gains. Heavyweight Saudi Basic Industries Corp (SABIC) added 0.5 percent and lender SABB rose 2.8 percent. Yanbu Cement surged 4 percent to a five-year high after the firm’s board recommended a 50-percent increase in capital to 1.57 billion riyals. It will issue one share for every two shares held, pending approval. It will also add 262.5 million riyals to statutory reserves, according to a bourse statement.
Elsewhere, Dubai’s measure fell and Abu Dhabi ended flat as some investors booked profits on fears that an early-year surge has left stocks over-priced. Dubai’s index slipped 0.5 percent, its second decline since Sunday’s 38-month high.
Emaar Properties fell 1.2 percent to 4.9 dirhams, down for a second day since Sunday’s four-year peak. Lender Emirates NBD dropped 2.1 percent. Abu Dhabi’s index ended flat, matching Monday’s 35-month high and up 11.1 percent in 2013. Abu Dhabi’s Commercial Bank International, which rarely trades, surged 14.8 percent.reuters
