By Olzhas Auyezov – Reuters
Egyptian stocks have been on the rise since the ouster of former president Mohamed Morsi in July, driven largely by local retail investors who support the new army-backed government – but are wary of any escalation of violence.
“Yesterday was a dramatic day and the country has entered a period of mourning,” said Cairo-based independent financial analyst Osama Mourad.
Before the attacks, the index was rallying on hopes for fresh financial aid from the Gulf states and against a backdrop of increasing stability and security – a perception which, at least temporarily, was dented on Wednesday.
The Egyptian index also faced resistance after closing near the psychologically important level of 6,500 points in the previous session, Mourad added.
Dubai’s main index briefly rose on Thursday above 2,900 points, an area of major technical resistance established in late October and early November, but then came off its highs to close at 2,891 points, up just 0.1 percent.
Many of the stocks that had lifted the index 1.1 percent on Wednesday closed in the red. Developer Emaar was down 0.3 percent, telecommunications operator du dropped 1.3 percent and Mahsreq bank lost 7.8 percent.
In the short term, further gains in Dubai may well depend on whether the emirate is successful in its bid to host the Expo 2020 world fair. The winning city will be announced on Nov. 27 and until then the market may be volatile.
Qatar’s bourse slipped 0.5 percent as it continued to consolidate after a strong rally, while Saudi Arabia’s index, which had entered a profit-taking period one day before Qatar, edged up 0.01 percent.
Bahrain’s index climbed 0.7 percent as Ahli United Bank recovered, after dropping 2.2 percent in the previous session following announcements of share sales by “key persons” – a legal term for board members and top executives.
Thursday’s Middle East Stock Highlights
EGYPT
* The index fell 0.6 percent to 6,457 points.
* The index fell 0.5 percent to 10,283 points.
* The index edged up 0.01 percent to 8,338 points.
* The index gained 0.1 percent to 2,891 points.
* The index slipped 0.2 percent to 3,832 points.
* The index rose 0.7 percent to 1,202 points.
* The index fell 0.1 percent to 6,772 points.
* The index slid 0.5 percent to 7,841 points.
