Egyptian euphoria lingers on markets

Egypt’s main index clung on to gains made yesterday following the Muslim Brotherhood’s victory in the presidential election this week.The EGX30 Index rose 0.3 per cent to 4,628.45, its fourth consecutive day of gains, despite the threat of downgrades for three big Egyptian banks. Commercial International Bank, Orascom Telecom Media and Technology Holding and Palm Hills Developments led the gains. Standard & Poor’s said yesterday National Bank of Egypt, Banque Misr and Commercial International Bank faced a 50 per cent chance of downgrade after Egypt’s sovereign rating of B was placed on negative watch this week. Despite the speculative gains for local stock, there remained plenty of reasons for investors to remain on the sidelines in Egypt, said Aziz Unan, a fund manager at Renaissance Asset Managers. “I stopped investing in that country some time ago,” he said. “For the time being, it’s not investable … I don’t believe or expect that things will improve significantly in the short term.” UAE markets ended the day in the red after heavyweight stocks including Etisalat, National Bank of Abu Dhabi and Emaar Properties slid amid slack trading activity, with fewer than half the usual average number of shares trading. The Dubai Financial Market General Index fell 0.1 per cent to 1,452.18, while the Abu Dhabi Securities Exchange General Index slipped 0.4 per cent to 2,469.86. Elsewhere in the Gulf, all other markets fell. The Saudi Tadawul All-Share Index fell 1.66 per cent to 6,585.63. Oil prices were mixed, with Brent crude futures down 16 cents at US$92.39 per barrel and West Texas Intermediate crude up 35 cents at $79.36 per barrel.