Egypt's index climbs

30 Oct, 2012

Egypt's benchmark index climbs to its highest in over a month ahead of an IMF visit to Cairo that investors hope will lead to a quick loan accord that puts the economy back on track. Egypt has asked the International Monetary Fund for $4.8 billion in financing to help it plug a budget deficit that has mushroomed to 11 percent of gross domestic product since the popular uprising early last year.
An IMF negotiating team arrives in Cairo on Tuesday for two weeks of talks. The index rises 1.7 percent to 5,893 points, its highest close since September 26. "This is driven by the news that the IMF is arriving for loan talks," says Mohamed Kotb of Naeem Brokerage. Among bluechips, Talaat Moustafa gains 6.2 percent, Palm Hills 4 ercent and Orascom Construction 2.3 percent.
Orascom Telecom, which Monday invited shareholders to a meeting on November 12 to change its name to Global Telecom Holding, inches up 0.8 percent. The company was taken over by Russia's Vimpelcom in April 2011. Abu Dhabi's property stocks help lift the bourse to a fresh 14-month closing high as its top two developers' advanced merger talks draw interest, while Dubai's measure slips for a third consecutive session. The UAE capital's index gains 0.5 percent to 2,671 points, its highest close since August 2011. Dubai's index marks its largest one-day loss since September 26 as weak earnings disappoint investors. It closes 1.2 percent lower at 1,622 points, trimming year-to-date gains to 19.9 percent. Bellwether Emaar Properties falls 1.6 percent.

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