CAIRO: The Egyptian benchmark index ended higher, buoyed by reports that Egypt is negotiating financing packages to support the budget, prompting investors to snap up battered stocks.
The index gained 1.9 percent to close at 4,029 points.
"This is partly because prices have reached very attractive levels for investors to buy and also because there were several encouraging financial reports such as the one about Egypt renegotiating a loan with the International Monetary Fund," said Hisham Metwalli, trader at Arab Finance Brokerage.
Finance Minister Hazem El-Beblawi said last week that Egypt was again considering IMF financing it previously turned down and was in talks with Saudi Arabia and the United Arab Emirates for funds close to $7 billion. He said on Sunday that Qatar had granted Egypt $500 million to support the budget.
"This is something very positive of course as there was a big problem with foreign reserves dipping and that will make a difference," Metwalli said.
Orascom Construction Industries, the second biggest gainer of the day, climbed 4.6 percent. UAE’s Aldar Properties said earlier Sunday a unit of the firm was given the contract to build a major retail mall on Abu Dhabi’s Yas Island.
Orascom Telecom Holding gained 3.2 percent and Commercial International Bank ended up 0.5 percent.
"The fundamentals of the market are all good what we need now is a stronger turnover in order to recover," said Metwalli.
