Egypt Shares Rise on Bourse Head Appointment, Global Recovery

Egypt Shares Lead Mideast Higher
Egyptian Exchange Chairman Maged Shawky, pictured, will be replaced on July 15 by Khaled Seyam. Photographer: Andrew Harrer/Bloomberg

Egypt shares rose to the highest this month, among the Middle East’s biggest gainers, as concern about the global economic recovery faded and as a new chairman was appointed for the country’s bourse. Israeli stocks gained.

The EGX 30 Index advanced 1.4 percent to 6,108.29, the highest since June 29 boosted by EFG-Hermes Holding SAE. Al Mal newspaper reported the investment bank is considering spending at least 10 percent of its 1 billion euro ($1.26 billion) InfraMed fund in public-private partnership infrastructure projects in Egypt. Citadel Capital Corp. increased 2.1 percent after one of its subsidiaries signed a $130 million contract to build a cement plant.

A higher global growth forecast from the International Monetary Fund last week and lower-than-estimated U.S. jobless claims boosted optimism that the economy will avoid slipping back into recession. The Standard & Poor’s 500 Index advanced 5.4 percent in the week.

“Global markets were in the green on Friday, helping improve investor sentiment in the region and especially Egypt,” said Mostafa Abdel Aziz, relationship manager at Cairo-based investment bank Beltone Financial. The appointment of a new chairman of the stock exchange may have helped as “some decisions of the ex-chairman bothered retail investors. Strong public opinion had been established against him.”

Prime Minister Ahmed Nazif appointed Khaled Seyam to replace Maged Shawky on July 15. Seyam is the deputy chairman of the Egyptian Financial Supervisory Authority, the market regulator. The Egyptian Exchange suspended trading of 26 small and medium-sized companies in October to determine why shares as much as tripled without any apparent justification.

Oil Gains

Saudi Arabia’s Tadawul All Share Index gained 0.7 percent after advancing the most in a month yesterday. Earnings from different industries in the kingdom “are providing some reassurance for investors and the knock-on effect will be felt across the region,” said Julian Bruce, director of equity sales at EFG-Hermes Holding SAE. The Bloomberg GCC 200 Index climbed 0.5 percent.

Food Products Co. jumped 6.3 percent after the Saudi Arabian company said second-quarter profit increased almost seven-fold. Banque Saudi Fransi rose the most in almost a month after the Saudi Arabian lender part-owned by Credit Agricole SA said second-quarter profit rose 9.4 percent as lending grew.

Crude oil for August delivery climbed 5.5 percent last week on the New York Mercantile Exchange, closing at $76.09 a barrel on July 9. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.

Israeli Stocks

Israel’s TA-25 Index advanced 1.5 percent to 1,106.70, the biggest gain since June 20, led by Teva Pharmaceutical Industries Ltd., the world’s largest maker of generic drugs, and Israel Chemicals Ltd., which extracts minerals from the Dead Sea to make fertilizers.

EFG-Hermes climbed 1.5 percent to 30 Egyptian pounds, the highest since June 28. Citadel rose the most since June 23 to 6.44 pounds.

The DFM General Index gained 0.4 percent. Dubai Financial Market PJSC, the first Arab stock exchange to sell shares to the public, advanced 1.4 percent to 1.50 dirhams.

Nasdaq Dubai, the stock exchange in the Dubai International Financial Center business park, said trading of all listed shares are now being routed through the platform of DFM. Clearing, settlement and custody functions for Nasdaq Dubai also migrated to DFM’s systems as part of a consolidation of the two bourses.

Oman’s benchmark stock index rose 0.4 percent, Qatar’s gained 1.2 percent and Bahrain’s increased 0.2 percent. Abu Dhabi’s ADX General Index slipped less than 0.1 percent. Kuwait’s market was closed for a holiday.

Israel’s 10-year Mimshal Shiklit maturing in January 2020 fell 0.30 shekel to 104.66 in Tel Aviv, pushing the yield on the 5 percent notes up four basis points to 4.67 percent. The shekel was little changed on July 9 at 3.8709 per dollar.

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