Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
FRIDAY, 18 APR 2014
11:12 AM Beirut time
Weather    
Beirut
20 °C
Blom Index
BLOM
1,214.01down
Middle East
Follow this story Print RSS Feed ePaper share this
Egypt stocks surge after Sisi cleared for presidency vote
Reuters
File - An Egyptian trader talks as she monitor her screen at the stock market, in Cairo, Egypt, March 10, 2013. (AP Photo/Amr Nabil)
File - An Egyptian trader talks as she monitor her screen at the stock market, in Cairo, Egypt, March 10, 2013. (AP Photo/Amr Nabil)
A+ A-

DUBAI: Egypt’s stock market climbed to a 44-month high on Tuesday after the army chief was given the greenlight to run for president, while markets in the United Arab Emirates snapped a two-session decline.

The Supreme Council of the Armed Forces cleared Field Marshal Abdel Fattah al-Sisi to run in upcoming elections, which he looks sure to win. Many Egyptians see him as the best chance for political stability.

“Sisi still didn’t officially announce his bid for presidency, but all roads are leading in that direction because of popular demand,” said Mohammad Radwan, director of international sales at Pharos Securities in Cairo.

“People are more comfortable having Sisi as president rather than anyone else because it creates a sense of stability.”

Sentiment was also helped by Finance Minister Ahmad Galal saying the interim government would soon launch a second stimulus package of about the same size as the first one, 30 billion Egyptian pounds ($4.3 billion).

In a sign that Sisi may have to face a growing Islamist militant campaign, gunmen killed a senior Egyptian Interior Ministry official outside his home in Cairo Tuesday, according to security officials.

But for now at least, many investors feel the level of violence is tolerable. Cairo’s benchmark index rose 1.5 percent to 7,368 points, its highest level since May 2010.

It climbed above strong technical resistance at 7,248 points, the January 2011 high; a weekly close above that level would confirm a break. The index faces another major resistance at 7,693 points, the peak in April 2010.

Shares in EFG-Hermes rose 3.3 percent after the investment bank said it was arranging three initial public offers of shares with a combined value of over $300 million this year – Egypt’s first IPOs since 2010.

In the United Arab Emirates, Dubai’s bourse jumped 3.2 percent to 3,805 points, halting a two-day drop that was triggered by the global sell-off in emerging markets. It ended just short of Thursday’s five-year, intra-day peak 3,826 points.

Blue chip Emaar Properties jumped 6.3 percent to 8.24 dirhams, its highest close since September 2008, after EFG-Hermes raised its price target for the stock to 10.1 dirhams and upgraded it to a ‘buy, ‘citing improved sentiment toward growth stocks in the region and the strengths of Emaar’s own business, which saw strong gains in leasing and hospitality revenues during the first nine months of last year.

“Emaar represents a pure exposure for many investors who want to play these two themes and the increase in liquidity (into both the capital market and real economy) is supporting asset price appreciation which is reflecting positively on Emaar’s value,” EFG-Hermes said.

Some traders also cited talk that construction was starting on Dubai Hills Estate, a flagship development which is part of the Dubai government’s mega project Mohammed Bin Rashid City.

“The move in the market today was mainly retail-driven,” said Ali Adou, portfolio manager at The National Investor. “Overall, there is a strong momentum in the market as it is backed by a solid economic story.”

Abu Dhabi’s measure also ended its decline, climbing 1.3 percent.

 
A version of this article appeared in the print edition of The Daily Star on January 29, 2014, on page 5.
Home Middle East
 
     
 
Egypt
Advertisement
Comments  

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus
Story Summary
Egypt's stock market climbed to a 44-month high on Tuesday after the army chief was given the greenlight to run for president, while markets in the United Arab Emirates snapped a two-session decline.

Cairo's benchmark index rose 1.5 percent to 7,368 points, its highest level since May 2010 .

Blue chip Emaar Properties jumped 6.3 percent to 8.24 dirhams, its highest close since September 2008, after EFG-Hermes raised its price target for the stock to 10.1 dirhams and upgraded it to a 'buy, 'citing improved sentiment toward growth stocks in the region and the strengths of Emaar's own business, which saw strong gains in leasing and hospitality revenues during the first nine months of last year.
Related Articles
 
 
Cairo stocks drop as Sisi presidential run sparks profit-taking
Entities
Advertisement


Baabda 2014
Advertisement
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Multimedia
Images  
Pictures of the day
A selection of images from around the world- Thursday April 17, 2014
View all view all
Advertisement
Rami G. Khouri
Rami G. Khouri
Silencing Ayaan Hirsi Ali’s hate talk
Michael Young
Michael Young
Why confuse gibberish with knowledge?
David Ignatius
David Ignatius
Putin will keep rolling, until Obama says no
View all view all
Advertisement
cartoon
 
Click to View Articles
 
 
News
Business
Opinion
Sports
Culture
Technology
Entertainment
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS