Middle East shares rise after Egypt’s President Mubarak resigns

Middle East shares gained, sending Abu Dhabi’s stock index to the highest in a month, as Egyptian President Hosni Mubarak’s resignation bolstered investor optimism. Israeli stocks rose the first time in four days.

November High

Dana Gas, a fuel producer with operations in Egypt, surged 4.5 percent and jumped to 70 fils. “Investors have now been assured that in the short term there will not be chaos in Egypt,” said Sebastien Henin, who helps oversee $110 million at The National Investor in Abu Dhabi. “Names with exposure to the country are gaining. We should have a strong week across the region.”

Israeli Concerns

Egypt’s Supreme Council of the Armed Forces, headed by Field Marshal Mohamed Hussein Tantawi and Chief of Staff Lieutenant General Sami Hafez Enan, promised in a statement to honor all international and regional treaties signed by Egypt.

“The resignation of Mubarak raises a lot of questions for Israel in the near and long term,” said Saar Golan, a trader at Clal Finance Brokerage Ltd. in Tel Aviv. “In the immediate term, however, the Egyptian military statement that it is committed to honor international agreements led to a nationwide sigh of relief for now, and should calm the markets in the near term.”

Ampal-American Israel Corp., which owns a 12.5 percent stake in Egyptian gas supplier East Mediterranean Gas Co., gained 2.6 percent to 7.848 shekels.

(Source: businessweek)


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