CAIRO - Regional markets rallied on Sunday as upbeat global sentiment spilled over, and Egypt's bourse hit a seven-month high after the finance minister said it will sign a $3.2 billion loan agreement with the International Monetary Fund. Cairo's main index rose 2.9 per cent to its highest close since June 21. "The IMF negotiations and the clearer timetable for presidential elections are boosting confidence in the market. Investors are pouring fresh cash into Egypt," said Chamel Fahmy of Pharos Securities. Presidential elections will be held in the first week of June, several weeks ahead of the previously announced end-June deadline for the vote. Palm Hills jumped 10 per cent, Egyptian Resorts and Amer Group surged 9.7 and 9.5 per cent respectively. In Dubai, the index made its largest one-day gain in almost a year, up 3.6 per cent to its highest close since June as improving local fundamentals brought back buying momentum. Bellwether Emaar Properties gained 3.9 per cent, Dubai Financial Market jumped 7 per cent and Air Arabia rose 6.5 per cent. "The UAE economy is faring better than what the market was telling us - things are stabilising and we've had some good corporate earnings," said Fadi Al Said, head of investments at ING Investment Management. "The market is in an overbought situation technically but valuations are still distressed."
