DUBAI, Jan 9 (Reuters) - Egypt's bourse hit a fresh 10-week
high on Wednesday after a $2.5 billion financial lifeline from
Qatar spurred Cairo investors to buy equities, as most Gulf
markets continued their rise on the back of strong
fourth-quarter earnings expectations.
Qatar lent the country another $2 billion and gave it
another $500 million outright to help control a currency crisis.
Political strife has set off a rush to convert Egyptian
pounds to dollars over the past several weeks, sending the
currency to a record low against the U.S. dollar and
draining foreign reserves to a critical level.
"There is some momentum from the Qatari aid - people are
betting on valuations and results - but, generally, it's not a
good environment (for investing in equities)," said a trader at
a regional investment bank. "Foreign reserves are at dangerous
levels, the IMF loan deal is still not closed and there's no
clarity on the direction of the new government."
A senior International Monetary Fund official met Egypt's
government on Monday to discuss a vital, long-delayed $4.8
billion loan. Investors have been betting on the loan for the
past few months and delays are making some nervous.
Cairo's gainers outnumbered losers 15 to 12, while six
stocks ended flat. Commercial International Bank rose
3.5 percent and Telecom Egypt gained 1.8 percent.
The market is trading near resistance levels and the rally
is likely to falter, the trader added.
Cairo's benchmark index climbed 1.1 percent to
5,867 points, its highest finish since Oct. 29. It peaked at
5,969 points on Sept. 26. That was its highest level since
January 2011, when a political crisis started that ultimately
led to the exit of former President Hosni Mubarak.
Elsewhere, Saudi Arabia's index rose 1 percent to
its highest close since Sept. 17 as banks supported.
Heavyweight Al Rajhi Bank and Samba Financial
Group gained 3.3 and 3.4 percent respectively. Alinma
Bank climbed 3.4 percent.
Investors sentiment for the financial sector was buoyed by
Banque Saudi Fransi reporting a 22.2 percent jump in
quarterly net profit on Monday. The lender's shares rose 0.7
percent on Wednesday.
In the UAE, Dubai's bourse climbed to a fresh 10-month high
and daily traded volumes also hit their highest in the same time
period as an economic recovery boosts investor sentiment.
The emirate's index rose 1 percent to its highest
finish since March 5, taking 2013 gains to 7.6 percent. Volumes
- at 505 million - were the highest in one day since March 6.
"Given the speed of the rally, you may see some
profit-taking but it is justified - we've seen credit rally and
real estate recover," said Anastasios Dalgiannakis,
institutional trading manager at Mubasher. "The only asset class
lagging was equities and people are finally putting their money
there."
Dubai's property market is gradually recovering as demand
returns, following three years of slump. House prices in Dubai
had plunged by over 50 percent from a 2008 peak.
Shares in National Central Cooling surged 14.7
percent to a nine-month high, accounting for a more than a fifth
of all shares traded on the market.
Traders say the move seems exaggerated and lacks reasoning.
Abu Dhabi's benchmark slipped 0.2 percent, easing
from an 18-month high.
Investors booked gains in Aldar Properties and
Sorouh Real Estate, which slipped 3.1 and 3.8 percent
respectively, after the two developers rallied on Tuesday after
sources told Reuters they'd reached an initial merger agreement.
Aldar said in a bourse statement on Wednesday it is in
advanced merger talks with Sorouh.
Elsewhere, Qatar's index gained 0.4 percent to its
highest close since April 30.
Gainers outnumbered losers 13 to six on the 20-stock index.
Qatar Electricity and Water gained 1.5 percent and
Qatar Telecom rose 1.4 percent.
"Qatar will continue to focus on fourth-quarter results and
any change in the dividend announcements - if there is any
positive surprise - I would expect it to make up the lag it
had," said Marwan Shurrab, vice-president and chief trader at
Gulfmena Investments.
Doha's market fell 4.8 percent in 2012, following three
years of gains. It was among the worst performing markets in the
region as investors were disappointed with dividends and with
the slow progress over infrastructure development projects as
the country prepares to host the FIFA World Cup 2022.
WEDNESDAY'S HIGHLIGHTS
EGYPT
* The index climbed 1.1 percent to 5,867 points.
SAUDI ARABIA
* The index rose 1 percent to 7,127 points.
DUBAI
* The index rose 1 percent to 1,745 points.
ABU DHABI
* The index slipped 0.2 percent to 2,717 points.
QATAR
* The index advanced 0.4 percent to 8,694 points.
KUWAIT
* The index gained 0.4 percent to 6,066 points.
OMAN
The index advanced 0.4 percent to 5,801 points.
BAHRAIN
* The index eased 0.05 percent to 1,065 points.
(Editing by David French)