Gulf stocks edge up; Egypt jumps after currency float

Most stock markets in the Middle East edged up on Thursday, while Egypt rallied after the central bank decided to float the pound and raise interest rates by 300 basis points.

Egypt’s benchmark index jumped as much as 8.3 percent in early trade, before settling around 3.4 percent by midday. Almost all major stocks advanced.

“There will inevitably be fresh pain for the economy in the near-term,” Jason Tuvey, Middle East economist at Capital Economics, wrote in a market update. “Nonetheless, a devaluation could bring substantial benefits in the long-run.”

In the Gulf, Saudi Arabia edged up towards end of trading as blue chips recovered from the previous session’s losses, while Qatar underperformed regional equities as it closed below the 10,000-mark at 9,956.

Qatar National Bank was down 2.1 percent to QAR 156.7 and telecom firm Ooredoo slumped 3.2 percent to QAR 92.

Dubai’s main index rose 0.2 percent to close at 3,298 points. GFH Financial rose 3.2 percent to AED 1.29, accounting for a third of total trading value.

Abu Dhabi’s general index rose 0.4 percent to 4,282 points. First Gulf Bank rose 2.2 percent to AED 11.65 and National Bank of Abu Dhabi added 1.3 percent to reach AED 8.89. 

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com