Middle East markets: Egypt bourse at seven-month high on IMF loan talks; Gulf rallies

Regional markets rallied on Sunday as upbeat global sentiment spilled over, and Egypt's bourse hit a seven-month high after the finance minister said it will sign a $3.2 billion loan agreement with the International Monetary Fund. Cairo's main index rose 2.9 percent to its highest close since June 21.
"The IMF negotiations and the clearer timetable for presidential elections are boosting confidence in the market. Investors are pouring fresh cash into Egypt," said Chamel Fahmy of Pharos Securities.
Presidential elections will be held in the first week of June, several weeks ahead of the previously announced end-June deadline for the vote.
Palm Hills jumped 10 percent, Egyptian Resorts and Amer Group surged 9.7 and 9.5 percent respectively.
In Dubai, the index made its largest one-day gain in almost a year, up 3.6 percent to its highest close since June as improving local fundamentals brought back buying momentum.
Bellwether Emaar Properties gained 3.9 precent, Dubai Financial Market jumped 7 percent and Air Arabia rose 6.5 percent.
"The UAE economy is faring better than what the market was telling us - things are stabilising and we've had some good corporate earnings," said Fadi Al Said, head of investments at ING Investment Management. "The market is in an overbought situation technically but valuations are still distressed."
Analysts expect Dubai's market to consolidate at these levels with some profit-taking in the coming sessions.
Regional sentiment is supported by gains in world stocks, which hit a 6-1/2-month peak on Friday on hopes that Greece will seal a long-awaited bailout deal this week.
"Good news internationally reflected well on local sentiment which is also excited about seeing the rally continue on the back of good Emaar numbers and other company distributions," said Haissam Arabi, chief executive at Gulfmena Investments.
In Abu Dhabi, the index ticked up 0.6 percent.
Dana Gas jumped 6.8 percent, Sorouh Real Estate surged 5.1 percent and Aldar Properties gained 3 percent.
In Saudi Arabia, petrochemical stocks led gains as the index rose 0.6 percent to a nine-month high. Trading was heavy, with investors bullish on the local economy.
Bellwether Saudi Basic Industries Corp (SABIC) was the main support, rising 0.5 percent. Advanced Petrochemical added 2.5 percent and Methanol Chemicals surged 9.9 percent.
In Kuwait, the index gained 1.7 percent, its largest one-day gain in 11 months, to close at a seven-month high.
Small-caps surged with Al Safwa Group up 9.4 percent, Al Ahlia Holding jumping 16.7 percent and Gulf Finance House climbing 7.8 percent.
Elsewhere, Qatar's benchmark rose from Thursday's two-week low, gaining 0.9 percent.
Gulf International Services surged to a six-week high, up 10 percent, after proposing a cash dividend of 1.3 riyals per share and 10 percent bonus shares.