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Sun 13 Feb 2011 11:32 AM

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Middle East shares rise after Egypt's president Mubarak resigns

Abu Dhabi’s stock index rises to its highest in a month; Dubai's DFM up

Middle East shares rise after Egypt's president Mubarak resigns
STOCK WATCH: Shares in Oman Telecommunications Co (Omantel) rose after the operators board recommended paying a 100 percent cash dividend (Getty Images)

Middle East shares gained, sending Abu Dhabi’s stock index to the highest in
a month, as Egyptian President Hosni Mubarak’s resignation bolstered investor
optimism.

Dana Gas, a fuel producer with operations in the North African country,
jumped 4.5 percent. Emirates Telecommunications Corp., the telephone-service
provider with a unit in Egypt, climbed to the highest in more than three months
as full-year earnings topped estimates. The ADX General Index increased 0.6
percent to 2,727.71, the highest since Jan. 13, at the 2 p.m. close in Abu
Dhabi.

“Investors have now been assured that in the short term there will not be
chaos in Egypt,” said Sebastien Henin, who helps oversee $110 million at The
National Investor in Abu Dhabi. “Names with exposure to the country are
gaining. We should have a strong week across the region.”

Mubarak on February 11 ceded power to the military after an 18- day popular
revolt that left about 300 people dead, according to United Nations estimates.

The Supreme Council of the Armed Forces, which has said it won’t be a
replacement for a legitimate government, will keep the current cabinet in
office during the transition process, a military spokesman said yesterday on
state television. U.S. stocks gained Feb. 11, with the Standard & Poors 500
Index rising 0.6 percent. The MSCI World Index increased 0.2 percent.

Dana Gas, a fuel producer with most of its output coming from Egypt, jumped
to 70 fils. Etisalat climbed 0.9 percent to 11.2 dirhams, the highest since
Nov. 1. Etisalat reported 2010 net income of 7.63 billion dirhams ($2.1
billion), topping the median of four analyst estimates for a profit of 7.57
billion dirhams, according to data compiled by Bloomberg.

Egypt’s Supreme Council of the Armed Forces, headed by Field Marshal Mohammed
Hussein Tantawi and Chief of Staff Lieutenant General Sami Hafez Enan, promised
in a statement to honor all international and regional treaties signed by the
North African nation.

Demonstrations began in Egypt on January 25, inspired by an uprising that
ousted Tunisian President Zine El Abidine Ben Ali on Jan. 14. Egypt’s stock
exchange delayed its opening until Feb. 16 to allow companies to disclose the
effects of the protests on operations. The benchmark EGX 30 Index tumbled 16
percent in the week ended Jan. 27.

Dubai’s DFM General Index gained 0.4 percent. Qatar’s QE Index increased 0.7
percent, Oman’s MSM30 Index rose 0.6 percent and Bahrain’s BB All Share Index
added less than 0.1 percent. The Bloomberg GCC 200 Index of Gulf stocks
advanced 0.1 percent. Kuwait’s SE Price Index dropped 0.3 percent and Saudi
Arabia’s Tadawul All Share Index slipped 0.1 percent.

 

 

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