UPDATED: Egyptian and Arab stocks soar as Russian proposal diffuses Syria crisis

Ahram Online, Tuesday 10 Sep 2013

Egypt's main index leapt by 3.11 percent and the Arab market by 8.5 percent Tuesday, reflecting investors' relief over Syria

Russia, Syria
Supporters of Syrian President Bashar al-Assad's sign a large Russian flag during a rally at al-Sabaa Bahrat square in Damascus

Egyptian stocks gained on Tuesday after Russia's proposal for Syria to hand over its chemical weapons appeared to reduce the chance of US-led military intervention against the Assad regime.

The session ended with the main index up by 3.11 percent, reaching 5,408 points, its highest level in two weeks, as Egyptian and Arab investors acted as net-buyers for a combined LE14.5 million worth of shares.

“Positive international responses to the Russian proposal have revived hopes of a diplomatic solution for Syria, pushing up Arab and global indices,” said Eissa Fathi, vice-head of the securities division at the Cairo Chamber of Commerce.

Almost the entire EGX30 was on the rise as the turnover of listed stocks reached LE613 million.

Market bellwether Commercial International Bank jumped 3.14 percent, while investment bank Egyptian Financial Group-Hermes Holding Company rose 4.47 percent and Orascom Telecom 3.57 percent.

Real estate stocks Palm Hills Development Company and TMG Holding gained 5.07 percent and 4.88 percent respectively, while Six of October Development & Investment (SODIC) rose 2.79 percent.

The broader index EGX70 also gained 2.35 percent on Tuesday.

Arab markets in Dubai, Abu Dhabi, Kuwait and Saudi Arabia soared 8.5, 5.53, 7.87, and 2.9 percent respectively.

World shares climbed to a near one-month high and oil and government bonds slipped on Tuesday, helped by the news on Syria, Reuters reported.

Oil fell close to $112 a barrel, its lowest in two weeks, while safe-haven US and German government bonds, as well as gold and other precious metals, also fell.

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