Egypt's bourse climbed on Tuesday on improving investor sentiment over a likely quicker transition to civilian rule, while most Gulf markets declined on global concerns and a sell-off after recent gains. Egypt's main index climbed 1 percent after the country's military rulers set presidential vote nominations for March 10. It was previously due to be held around mid-April.
Protesters accuse the generals who took power from President Hosni Mubarak a year ago of mismanaging the country and are demanding a swift end to military rule. Thirteen people have died in the latest street violence. "I think the market is responding well to bringing forward the date for registration of presidential candidates," says Ahmed Abu Taled of Pharos Securities.
"This will speed the transition process." Orascom Telecom Media and Technology was the most traded stock, surging 7.8 percent. The company's founder Naguib Sawiris detailed new expansion plans in Europe, the Middle East and Africa in a Reuters interview on Monday. "I expect Orascom will be the stock of the future. Sawiris has a close interest in the company and seeks expansion in the upcoming period," said Wael Enaba of Awa'el Securities. OTMT subsidiary Mobinil rose 7.1 percent.
In Dubai, builder Arabtec continued to rise, despite the absence of any hard news, but gains were not enough to sustain Dubai's two-session rally. Arabtec rose for a seventh session, up 3.9 percent, to extend gains to over 60 percent so far this year. Traders said there is much speculation in the market but no real news that would justify such an increase in the share price. "This rise has not been backed up by any change in fundamentals," said Loic Pelichet at NBK Capital.
Ahmed Talhaoui at Abu Dhabi's Gulf Capital also said there is no structural reason Arabtec to skyrocket. "The stock has rallied so much that it would be healthy for the company or the regulator to comment on this price action." Despite Arabtec's rally, Dubai's index eased 0.2 percent. Bellwether Emaar Properties retreated 2.1 percent and Dubai Financial Market slipped 1.7 percent.
In Qatar, the index eased 0.5 percent to snap a nine-day rally, weighed by selling by foreign investors. Qatar National Bank fell 1 percent and Commercial Bank of Qatar slipped 0.6 percent. "There's a sell-off in the banking sector in general, mostly by foreigners. Insiders are buying while foreigners are selling off," said one Qatari broker, who declined to be named.
Abu Dhabi's bourse also retreated, weighed lower by a 6.6 percent slide in Union National Bank shares, after its quarterly earnings fell 19.2 percent. In Oman, sentiment ahead of earnings attracted institutional investors to stocks such as Omantel and Renaissance Services, which rose 0.8 percent and 2.6 percent respectively. The index added 0.4 percent.