Egypt's star shines on bourse over foreign aid

Egypt's exchange climbed to its highest level in almost seven weeks as investors were buoyed by Saudi Arabia's aid package

How the ADX closed on May 22, 2011.

Egypt's exchange was the star of the region today as it rose to its highest point in nearly seven weeks as a new international aid package aimed at bolstering the economy offered a boon to investors.

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Last Updated: May 22, 2011

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The benchmark EGX 30 index gained 3 per cent to 5,405.52 points, its highest close since April 7, 2011.

Saudi Arabia, largest economy in the region, has pledged $4 billion in aid to Egypt.

Market heavyweights led the momentum as Orascom Telecom, rose 4.1 per cent to 4.58 Egyptian pounds and Orascom Construction, the largest listed Egyptian company, advanced 3.5 per cent to 259.99 Egyptian pounds.

Commercial International Bank gained 4.4 per cent to 30.83 Egyptian pounds.

But for most 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, head of asset management and advisory at Daman Investments.

"Investors are sitting on positions in the market and I would be surprised if people have played the risk-game," he said.

Volumes elsewhere on the Dubai market were meagre at just 20 million shares changing hands.

Anticipation ahead of index compiler MSCI's reassessment of the UAE and Qatar's is also keeping traders at bay, Mr Janab added.

The Dubai Financial Market General Index slipped 0.3 per cent to 1,578.68 points and the Abu Dhabi Securities Exchange edged 0.3 per cent lower to 2,646.77 points.