CAIRO: Egypt investors are likely to be cautious after the country’s public prosecutor summoned former president Hosni Mubarak as part of probes into the killing of protesters and the embezzlement of public funds.
Egypt’s main index fell to a two-week low on Sunday in the first day’s trading since protests on Friday to demand Mubarak and former officials be put on trial.
"I recommend clients to target food-related stocks like Juhayna and Ajwa during time of political unrest because these are basic necessity items that are consumed," says Islam Ibrahim of Cairo Capital Securities.
"Investors should stay clear of real estate stocks because there are not much sales of land going on. This is besides the legal land cases they faced prior to the revolution," he adds, specifying Talaat Moustafa and Palm Hills as examples.
Sentiment is expected to remain upbeat in Dubai, with local stocks more attractive because of the UAE’s safe haven status within the Middle East.
Saudi Arabia bank results have so far failed to excite investors. Riyad Bank reported an 8.3 percent increase in first-quarter profit following improved income from banking services, while Saudi Hollandi Bank’s quarterly profit rose 3.5 percent, but missed forecasts.
"Credit growth has been picking up over the past few months and Riyad’s numbers indicate that pressure from provisions is weakening and the cost of risk is falling, which is a big issue for Saudi banks," says Ibrahim Masood, senior investment officer at Mashreq Bank.
