Mideast Stocks: Egypt bourse surges on cenbank reforms, Abu Dhabi near record high

Mideast Stocks: Egypt bourse surges on cenbank reforms, Abu Dhabi near record high

The Egyptian stock market surged on Thursday following an IMF deal and the central bank's announcement on economic reforms, while the Abu Dhabi index advanced within a whisker of a record high.

The International Monetary Fund (IMF) and Egypt have reached a $3 billion funding deal that will run over 46 months, the IMF said. Egypt's central bank said it was introducing a series of new instruments, including currency swaps and forwards, to allow banks greater flexibility in currency trading.

The central bank also raised interest rates by 200 basis points in an out-of-cycle meeting, saying it aimed to anchor inflation expectations and contain demand-side pressures.

Egypt's blue-chip index leapt 4.9%, its biggest intraday gain since early August, boosted by a 9.2% surge in Commercial International Bank Egypt. Earlier this week, the Egyptian prime minister said that the country aims to give income tax breaks to companies that can reach up to 55% for some.

The Egyptian market rose significantly as international investors returned to a certain extent, said Fadi Reyad, Chief Market Analyst at CAPEX.com for the Middle East and North Africa. "The market could find more support from the strong banking sector's performance." Thursday's gains diminished year-to-date losses to 7.3%.

In Abu Dhabi,