Egyptian stocks on Thursday extended gains from the previous session offsetting some of its wide losses incurred in the first three sessions of the week following protests in several Egyptian cities.
Anti-government protests broke out last weekend against President Abdel Fattah al-Sisi, causing shares to plunge on the Cairo bourse early in the week.
Egypt's blue-chip index rebounded for a second day, gaining 1.9% with 27 of 30 stocks rising on the index.
The country's largest lender Commercial International Bank jumped 4.1% and Cairo for Investment and Real Estate Development (CIRA) surged 10%, its biggest since April 2011.
Exchange data showed foreign investors were net buyers of the stocks.
The index had lost over 10% in first three sessions of the week in what the bourse's chairman Mohamed Farid said was an 'unjustified' reaction.
"Earlier this week, retail investors (with long memories of the events in 2011) were unnerved by the protests on Friday. The EGX lost more than 10% between Sunday-Tuesday and so it is not surprising that we are seeing a bounce back," said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
"Our channel checks suggest margin calls on retail investors are mostly done and we expect the market to recover next week supported by the large caps," he added.
However, markets elsewhere in the region were mostly subdued in lacklustre trade.
Saudi Arabia's key stock index gave up early gains to end flat. Banque Saudi Fransi declined 0.9%, while Sahara International Petrochemical (Sipchem) advanced 2.8% after its board approved a higher first-half dividend compared to a year earlier.
In Abu Dhabi, the index lost 0.4%, with market heavyweight First Abu Dhabi Bank slipping 0.4%, while Emirates Telecommunications Group was down 0.7%.
Dubai's index closed 0.2% lower with most property stocks drifting into negative territory. Blue-chip developer Emaar Properties dropping 1.7% and unit Emaar Development shedding 0.7%.
A weakening property market in the United Arab Emirates is likely to put more pressure on the asset quality of the banking sector, Fitch Ratings agency said.
Qatar's index also slid 0.2% with Gulf's biggest lender Qatar National Bank declining 1% and Masraf Al Rayan decreasing 0.6%.
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