Dubai: Shares in Egypt's Talaat Moustafa Group lead Egypt's benchmark index higher Sunday after an investigation on its Madinaty land deal case was shelved, traders say, although a court case on the dispute continues.
Egypt's general prosecutor dropped an investigation that included a former housing minister and Talaat Moustafa's ex-chairman, saying public money was not misused, the daily Al Masry Al Youm reported. A lawyer confirmed the report.
The stock gained three per cent, after rising as much four per cent in initial business.
"Talaat Moustafa is reacting positively and is leading the market higher today after the prosecutor cancelled [an] investigation regarding the Madinaty project, saying the firm gave the government all benefits of the sale," says Karim Hosni of Pharos Securities.
Renewed hope
An Egyptian court will rule on the appeal of Talaat Moustafa's Madinaty land deal case on September 14, with traders citing renwed hope the deal will go ahead.
Overall, the main index rises 0.5 per cent at 6,507 points.
Saudi Arabia's index edged lower, after the benchmark posted its largest single-day gain in a month, as the outlook on the country's economy is positive according to the International Monetary Fund. The index slipped 0.03 points to 6,054 points.
The country's outlook is positive as it confronted the global financial crisis in an adequate manner, the IMF said on Friday.
It noted gross domestic product not related to oil will likely grow 4.5 per cent this year.
The fund's executive board also said the country's banking system is fundamentally sound, and the credit outlook has recently improved.
But the board, which had bilateral discussions with Saudi Arabia in July, said "vulnerabilities remain, especially from the volatility of oil prices."
"The IMF's estimates and outlook are broadly in line with ours, with the domestic environment continuing to benefit from an expansionary fiscal stance and, to a lesser degree, a pickup in credit," says Monica Malek at EFG Hermes in a research note.
"Although we are likely to see some withdrawal of government measures, we forecast that government spending will remain strong into the medium term given the investment programme," she adds.
Bellwether Saudi Basic Industries gained 0.3 per cent.
Qatar's index advanced in line with global markets and higher oil prices, with traders seeing upward momentum continuing. Heavyweight Qatar National Bank rises 0.5 per cent.
"We maintain our positive bias towards the Qatari market and expect the recent gains in international indices to support our view," Shuaa Securities says.
Banks led Oman's index 0.2 per cent lower. Bank Muscat and National Bank of Oman fell 0.7 and 1.2 per cent.
