Egypt's main index snapped a four-day losing streak on Wednesday on optimism the detention of former President Mubarak in a graft probe will bolster support for the country's military rulers. "We've been slightly hammered for the past few days and the market needed to correct," said Youssef Kamal of Naeem brokerage. "In addition, I think the (Mubarak) news today should boost confidence because it reflects that the army's new plan is working properly."
The benchmark rose 1.9 percent as Orascom Telecom gained 4.9 percent on optimism that shareholders will approve a plan to split the company in two, in a way that increases value share values. UAE bourses hit a fresh eight-week high, as foreign investors bought in on speculation the market will gain emerging market status from the index compiler MSCI decision in June.
The markets regulator said on Monday it would launch a new settlement system on April 28, and Qatar switches to Delivery Versus Payment (DvP) system on April 11, a key requirement for the country to earn the status. "We are seeing more and more interest from foreign institutions in Dubai and Abu Dhabi blue chips and this will continue," said Samer al-Jaouni, general manager of Middle East Financial Brokerage.
Abu Dhabi's index climbed 1 percent, its highest close since February 16, and Dubai's index added 0.6 percent, its highest close since February 15. Investors are buoyant on sentiment from the banking sector as the cost of insuring against Dubai's debts hit new lows in UAE and loan deposits rise.
National Bank of Abu Dhabi and First Gulf Bank jumped 2.8 percent and 3.6 percent respectively. Emaar Properties gained 1.8 percent to touch a nine-week high. Arabtec rose to a three-month high, climbing 0.7 percent. Qatar's index rose 0.5 percent toward Monday's eight-week high as better-than-expected first-quarter earnings from Industries Qatar lifted investor sentiment. IQ jumped 2.9 percent, after posting a 75 percent net profit increase to 2.1 billion riyals, from 1.2 billion riyals a year earlier, it said on Tuesday.
Traders expect Qatar companies to continue reporting market-beating results. "There's no reason to think any differently," said Julian Bruce of EFG-Hermes. Saudi Arabia's index ended 0.2 percent higher, as Saudi Basic Industries Corp lifted the index with investors upbeat about its expected results. Petrochem results were mixed on forecast by analysts surveyed by Reuters, but further gains are expected. Yanbu National Petrochemical Co rose 3.9 percent after saying net profit doubled, beating analyst forecast. Saudi Arabian Fertilisers Co fell 3.5 percent after posting a 19 percent rise in first-quarter net profit on Tuesday.
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