Egypt’s shares climbed the most in almost three weeks, leading a rally in the Middle East, on rising investor demand for emerging market assets. Oil last week rose the most since February, helping push Gulf stocks higher. Commercial International Bank Egypt SAE, the country’s biggest publicly traded lender, gained 2.4 percent and Orascom Telecom Holding SAE surged the most in four months. The EGX 30 Index advanced 1.5 percent, the most since Sept. 13, to 6,736.24 at the 2:30 p.m. close in Cairo. The Bloomberg GCC 200 Index of Gulf stocks rose 0.4 percent and Israeli benchmark index gained 0.6 percent at 3 p.m. in Tel Aviv.
Emerging-market stock and bond funds are attracting record investment this year because developing economies are expanding at a faster pace than the U.S. and Europe, according to EPFR Global. Investors put a net $30.2 billion into the equity funds last quarter and year-to-date inflows of $49.4 billion would be a record annual tally, an EPFR report issued Oct. 1 showed.
“There was a big inflow into emerging markets last week and that has helped Egypt,” said Angus Blair, head of research at Cairo-based investment bank Beltone Financial. “There is a key shift in sentiment toward emerging markets and global institutions are starting to focus on it since there is diminished spending in developing markets.”
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