Egypt's exchange reached its highest point in nearly seven weeks as a foreign aid package aimed at bolstering the economy offered a boon to investors.
The benchmark EGX 30Index advanced 3 per cent to 5,405.52 points, its highest close since April 7. Saudi Arabia, which has the region's largest economy, has pledged US$4 billion (Dh14.69bn) of aid to Egypt.
Market heavyweights led the momentum in Cairo, with Commercial International Bank rising 2 per cent to 5.09 Egyptian pounds and Orascom Construction, the largest listed Egyptian company, advancing almost 3 per cent to 258.51 pounds.
But for fund managers elsewhere in the region, the summer hiatus has already set in.
"The dearth is already there, and with results out of the way there are no other key catalysts," said Shehzad Janab, the head of asset management and advisory at Daman Investments in Dubai.
"Investors are sitting on positions in the market and I would be surprised if people have played the risk game."
Daily share trading volumes on the UAE markets have struggled to breach the 200 million mark, and anticipation ahead of the index compiler MSCI's reassessment of the UAE and Qatari markets is leading traders to hold their positions in the markets, Mr Janab said.
The Dubai Financial Market General Index slipped 0.3 per cent to 1,578.68, and the Abu Dhabi Securities Exchange General Index edged 0.3 per cent lower to 2,646.77.
Elsewhere in the region: Qatar's index fell 0.4 per cent to 8,606.81; Bahrain's lost 0.5 per cent to close at 1,364.57; Muscat's closed 0.3 per cent higher at 6,064.49; and the Saudi Tadawul All-Share Index rose 0.3 per cent to 6,750.75.
fhalime@thenational.ae
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
