Egypt stocks gain most in two years

Egypt’s blue-chip index rose yesterday for its biggest oneday gain in two years, after the country’s annual inflation dipped.

Egypt’s annual urban consumer price inflation fell to 15.7 per cent in November from 17.7 per cent in October, the official statistics agency Capmas said, exceeding analysts’ expectations.

Inflation had risen in October because of supply problems in the domestic fruit and vegetable market.

The Egyptian blue-chip index jumped 2.8 per cent to 12,476 points, with 26 of its 30 stocks gaining.

It follows an almost 30 per cent drop in the larger EGX 100 index since May this year.

The country’s largest lender, Commercial International Bank, added 4.8 per cent. The Middle East’s biggest investment bank, EFG Hermes, gained 4.9 per cent.

El Sewedy Electric rose 4.9 per cent after it said its unit had signed a contract to develop land at Ain Sokhna economic zone.

Sixth Of Development and Investment climbed 5.5 per cent. It said on Sunday that it would pay 800 million Egyptian pounds as part of a settlement deal with the Illicit Gains Authority.

Meanwhile, Madinet Nasr For Housing And Development gained 6.7 per cent after saying it was still interested in merging with Sodic.

In Dubai, the index lost 2 per cent to 2,500 points. But Islamic Arab Insurance rose 5.4 per cent after Goldilocks Investment Company, a unit of the Abu Dhabi Financial Group, increased its ownership in the firm to 14.1 per cent. Union Properties sank 10 per cent to trade at its lowest in more than five years, while Emaar Properties slid 4.6 per cent.

The Abu Dhabi index dropped 1 per cent to 4,789 points, pressured by its banks. The index heavyweight First Abu Dhabi Bank shed 0.9 per cent. Abu Dhabi Islamic Bank fell 3.8 per cent. The bank’s Egyptian unit, Abu Dhabi Islamic Bank Egypt, said on Sunday that it expected a fall of up to 8 per cent in its 2019 profit due to tax changes in Egypt.

Saudi Arabia’s main index slid 0.3 per cent to 7,820 points with oil weighing on its banks and petrochemical shares. Oil fell on Monday, in line with further declines in global stock markets, erasing the gains made last week.