Egypt continues winning streak

Egypt’s blue-chip share index rose sharply yesterday boosted by major lender Commercial International Bank after its strong fourth-quarter earnings, while banks also lifted Saudi Arabia’s stock market. Egypt ’s blue- chip index gained for a ninth straight session, climbing 2.6 per cent with 27 of its 30 stocks rising. The country’s biggest lender Commercial International Bank jumped 3.9pc after it reported fourth-quarter net profit after interest of 2.56 billion Egyptian pounds ($146 million) compared to 1.87 billion pounds a year ago.

Global Telecom Holding climbed 3.3pc to its highest since July after major shareholder VEON Ltd said that it offered to buy out the firm. VEON said it intends to offer 5.30 Egyptian pounds per share for the 42.3pc of the firm it does not already own. The offer represents a 20pc premium to Global Telecom’s closing price on Monday and is worth $600 million. Saudi Arabia’s index gained 1.2pc with National Commercial Bank adding 3.9pc.

Ratings agency Moody’s said the bank’s brand and diversified assets make it resilient to slower economic growth in Saudi. Al Rajhi Bank was up 1.4pc after the Capital Market Authority approved an increase in capital. The bank, which is currently capitalised at 16.25 billion riyals ($4.3 billion), proposed increasing its capital to up to 25 billion riyals. Saudi Arabia’s impending entry into emerging market indexes should mean a $15 billion inflow of “passive” benchmark-linked funds, which will attract billions more of active funds,regardless of low oil prices or geopolitical tensions.

Saudi’s Almarai climbed 1.7pc after the firm said it would acquire Premier Foods for an enterprise value of 108 million riyals. In Dubai, the index added 0.5pc with Emirates NBD, its largest bank, gaining 2.1pc. The company called a shareholders’ meeting on Feb. 20 to discuss the issue of non-convertible securities. Commercial Bank of Dubai rose 0.8pc after its board proposed a full-year cash dividend of 20.7pc of its share capital.

The Abu Dhabi index rose 0.2pc, with Emirates Telecommunications gaining 0.6pc. Abu Dhabi Islamic Bank increased 1.6pc to its highest since April 2016, its third straight session of gains. The lender has gained since reporting a 23pc increase in its fourth-quarter net profit. Qatar’s index edged down 0.1pc with Commercial Bank declining 0.8pc despite reporting a higher full-year net profit and proposing a cash dividend of 1.5 riyal per share for the same period.