Egypt stocks rise to 44-month high
Cairo, January 28, 2014
Egypt's stock market climbed to a 44-month high after the army chief got clearance to run for president, while UAE shares rose after two sessions of heavy profit-taking.
Cairo's benchmark index advanced 1.3 percent to 7,352 points, its highest level since May 2010. It rose above strong technical resistance at 7,248 points, the January 2011 high; a weekly close above that level would confirm a break. It faces another major resistance at 7,693 points, the peaks in April 2010.
Egypt's top military council gave the army chief, Field Marshal Abdel Fattah Al-Sisi, the green light on Monday to seek election as president. The popular opinion is that Sisi is likely to win the vote and many see him as the best chance for political stability.
Shares in property developer Talaat Mostafa climbed 3.4 percent, leading trading volumes.
Orascom Telecom Media and Technology Holding briefly jumped 9.4 percent after it denied media reports that it had halted talks on a regional cable network deal with Telecom Egypt. But it later came well off its high and now stands 1.7 percent higher.
In the United Arab Emirates, Dubai's measure rose 1.0 percent to 3,724 points, following a two-day drop as small- to mid-cap stocks led trading volumes. However, volumes are generally weak as investors are cautious of a renewed pull-back given the global sell-off in emerging markets.
Construction firm Arabtec gained 0.2 percent, leading trading, while Islamic Arab Insurance rose 3.8 percent.
Abu Dhabi's index climbed 1.0 percent to 4,573 points. - Reuters