Saudi Arabia’s stock market rose in early trade on Wednesday on the back of gains in oil prices, while the acquisition of an investment banking operation in Egypt sparked interest in that sector as a whole, pushing up the Cairo market.
The Saudi index added 0.5 per cent to 6,208 points in the first hour of trade. On Tuesday, it broke technical resistance at the early February and end-January peaks of 6,056-6,099 points, triggering a bullish right triangle pointing up to around 6,850 points.
Heavyweight stocks such as Saudi Basic Industries moved little and much activity focused on smaller speculative stocks such as National Agricultural Development, up by its 10 per cent daily limit.
Egypt’s index rose 0.4 per cent with several investment banking and financial services firms attracting interest after Beltone Financial signed a share purchase agreement this week to buy CI Capital, the investment banking arm of Commercial International Bank.
Beltone again jumped its 10 per cent limit on Wednesday, bringing its gains since February 9 to 230 per cent. This helped to pull fresh buying into other members of the sector; EFG Hermes gained 1.1 per cent and Prime Holding rose 6.1 per cent.
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