Markets optimistic that Egyptian president Hosni Mubarak’s pledge to step down will help quell protests that entered a ninth day
Arabian Gulf Shares rose, sending
Dubai’s gauge up the most in a month, on optimism Egyptian President Hosni
Mubarak’s pledge to step down will help quell protests that entered a ninth
Emaar Properties, builder of the
world’s tallest skyscraper with a unit in the North African country, gained the
most since September. Dubai Islamic Bank advanced 3.2 percent after Fitch
Ratings assigned the lender a long-term foreign currency issuer rating of A.
The DFM General Index jumped 2.2
percent, the most since January 2, to 1,577.11 at 11:58 am. in Dubai. The
measure extended gains after Yemen’s president said he won’t seek another term.
The Bloomberg GCC 200 Index climbed 0.4 percent, rising the first time in nine
Mubarak’s speech offered a “clearer
picture in terms of the political reading regionally; the markets had
overreacted before,” said Haissam Arabi, chief executive officer of Gulfmena
Alternative Investments in Dubai. “We expect minimal impact on the micro level.
It’s a matter of days before the dust settles.”
Mubarak said he won’t run for
another term and would make way for a new leader in presidential elections in
September, a concession rejected by opposition leaders and protesters who
refuse to wait months for an end to his regime. Mubarak said he’ll stay on to
ensure “stability” and push through political and economic changes before his
The President last week appointed
Omar Suleiman, head of Egypt’s intelligence services, as his vice president.
Egypt’s bourse, which has been closed all week, will decide whether to open on
a day-by-day basis, the exchange’s communications manager, Hisham Turk, said
Emaar increased as much as 3.9
percent to AED3.22. The company’s Egyptian unit, Emaar Misr for Development,
has investments of about AED29bn ($8bn) in the North African country, according
to its website.
Dubai Islamic, the United Arab
Emirates’ biggest bank complying with Shariah banking rules, rose the most
since Dec. 6 to 2.24 dirhams. Fitch assigned the bank with a stable outlook
citing its “strong franchise, earnings power and satisfactory liquidity
position” and the likelihood of support from the U.A.E. government if needed.
The unprecedented protests, which
followed a revolt in Tunisia that ousted President Zine El Abidine Ben Ali on
Jan. 14, have left more than 100 people dead in Egypt and roiled international
stock, bond and oil markets. Unrest has spread to Jordan, where King Abdullah
sacked his prime minister yesterday, and other countries including Yemen and
Egypt’s measure tumbled 16 percent
last week. Egypt Finance Minister Samir Radwan said banks will reopen either
tomorrow or February 6.
Abu Dhabi’s ADX General Index jumped
0.6 percent, while Bahrain’s BB All Share Index was little changed. Qatar’s QE
Index gained 0.3 percent, Kuwait’s SE Price Index increased 0.1 percent and
Oman’s MSM30 rose 0.5 percent.
Its very good to see that not only the political condition of Egypt but also the market is showing a very positive response and specially in Dubai where the price index increased substantially.