Egyptian shares jump

Egyptian shares led most Gulf bourses up on Tuesday, jumping 5.5 percent after smooth voting in a parliamentary election, but foreign investors said they were waiting on the sidelines for an end to political turmoil and a budget crisis. Egypt is scrambling for foreign help to fill a widening budget deficit and foreign reserves are sliding as the government tries to support the country's currency.
A showdown between police and protesters demanding an end to army rule killed 42 people last week and the interim government, which had been lobbying to secure a $3 billion International Monetary Fund financing package, quit. The violence was a setback for the army generals who have pledged to steer Egypt to democratic civilian rule after a popular uprising ousted President Hosni Mubarak. The main share index has tumbled 47 percent in 2011 as the ruling generals grapple with climbing food prices, labour strikes, dwindling police morale and fears of growing disorder.
Foreign investors dumped Egyptian securities during the uprising and their stake in the country has continued to decline as they opt not to roll over maturing treasury bills. Commercial International Bank was one of the most active stocks of the day and surged 9.9 percent, while Orascom Construction jumped 4.1 percent. In Kuwait, the index rose 0.3 percent after the government resigned on Monday, bowing to escalating demands by protesters and opposition deputies that they step down over corruption allegations.
Kuwait has been locked in a long-running political battle between the government dominated by the ruling Al Sabah family and parliament, but the appointment of a new government is seen as a positive development. In Abu Dhabi, banks helped lift the index 0.5 percent. National Bank of Abu Dhabi rose 2 percent and Abu Dhabi Commercial Bank gained 1.1 percent.
Dubai's measure added 0.2 percent, lifted by bellwether Emaar Properties which rose 2.7 percent. Qatar's bourse and the Muscat exchange also rose, but heavyweight Saudi Basic Industries weighed on the kingdom's measure which slipped 0.1 percent, while Bahrain's index also retreated. After regional markets closed, the euro climbed and European shares reversed earlier losses to gain for a third straight day, relieved by Italy's success in selling 7.5 billion euros in bonds even if its cost of borrowing continues to soar. Improving sentiment in global markets could have a positive sentiment on trading in the region as the end of year approaches.