Egypt Stocks Rally for Eighth Day on Improving Economy; Abu Dhabi Declines
Isaac Tshuva's Delek Real Estate Ltd. jumped the most in three weeks. Source: Delek Group via Bloomberg
Egypt’s benchmark stock index rose for an eighth day, leading an advance in Middle Eastern markets, as accelerating economic growth and gains in global markets boosted investor sentiment. Abu Dhabi shares declined.
Orascom Telecom Holding SAE of Egypt, the Middle East’s biggest mobile telephone company by subscribers, climbed to the highest in a month. Egypt’s EGX30 Index gained 0.9 percent to 6,371.14 at 1:17 p.m. in Cairo, the highest since June 22. The measure has gained 7.7 percent in the past eight days, matching the longest winning streak since April 2008. Abu Dhabi Commercial Bank PJSC declined after posting a loss, helping push Abu Dhabi stocks lower.
“Surely economic performance is giving investors more confidence in the market,” said Cairo-based Alia Khalil, senior equity trader at Naeem Brokerage. “However, you have to keep in mind that EGX30 has been carefully shadowing its peers overseas in terms of performance.”
Asian stocks rose for the fourth consecutive week, the longest winning streak in four months, as company earnings reports boosted confidence in the strength of the global economy. The MSCI Emerging Markets Index rose 1 percent last week.
Egyptian economic growth accelerated to 5.9 percent in the second quarter, boosted by construction and telecommunications, Economic Development Minister Osman Mohamed Osman said July 28. The economy expanded 5.8 percent in the first quarter of the year, Osman said in May. The central bank on July 29 held its benchmark interest rate at a four-year low for the seventh straight meeting.
Saudi Advances
Orascom Telecom gained 1.4 percent to 5.23 Egyptian pounds, the highest since June 28. Ezz Steel, Egypt’s biggest publicly traded steelmaker, advanced for an eighth day, rising 0.7 percent to 18.20 pounds. Al Mal newspaper said the company raised its ex-factory steel price in August by 1.4 percent to 3,600 Egyptian pounds ($633) per ton.
Saudi Arabia’s Tadawul All Share Index gained 0.5 percent, Oman’s measure increased 0.6 percent and the Kuwait Stock Exchange Index rose less than 0.1 percent.
Abu Dhabi’s ADX General Index fell for a third day, dropping 0.4 percent, as ADCB PJSC, the United Arab Emirates’ third-biggest bank by assets, and Aldar Properties PJSC had second-quarter losses. Dubai’s DFM General Index lost 0.1 percent.
ADCB retreated 1.2 percent to 1.65 dirhams, the lowest since July 13. The bank posted a loss of 531 million dirhams ($145 million) in the second quarter.
Yields Drop
Aldar, the emirate’s biggest property developer, retreated 1.6 percent to 2.42 dirhams, the lowest since March 2009. The company’s quarterly loss was 475.3 million dirhams, according to Bloomberg calculations based on first-half data provided by the company.
The developer’s long-term issuer credit rating was lowered six levels to BB-, the third-highest junk ranking, from A- by Standard & Poor’s, citing declining profits and real estate prices.
In Israel, the yield on the 10-year Mimshal Shiklit maturing in January 2020, declined two basis points to 4.45 percent, the lowest on record, on concern global economic growth will slow. The U.S. economy slowed in the second quarter as a scarcity of jobs eroded consumer spending, leaving the rebound dependent on a surge in business investment, according to a July 30 report.
Israel’s TA-25 Index rose less than 0.1 percent to 1,118.67. Teva Pharmaceutical Industries Ltd. gained for the first time in three days, rising 1.9 percent to 187.10 shekels. The world’s largest maker of generic drugs said the Competition Bureau in Canada agreed not to challenge the proposed merger with Ratiopharm. Teva declined 6.5 percent in the previous two days.
Qatar’s QE Index lost 0.4 percent, Bahrain’s benchmark and the Bloomberg GCC 200 Index of the biggest companies in the Persian Gulf, retreated less than 0.1 percent.
To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net Claudia Maedler at cmaedler@bloomberg.net
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