CAIRO/DUBAI - Egyptian shares made their largest one-day gain in more than nine years after the Muslim Brotherhood's Mohamed Mursi was named as the country's first freely elected president, while most Gulf markets slipped amid weak global cues. Cairo's index surged 7.6 per cent, its largest single-day rise since February 2003, after Morsi's win was announced on Sunday, which boosted hopes for a violence-free transition from army rule. Monday's rally is also the fourth biggest gain in the index's 14 year history. Traders, however, were cautious, saying the market euphoria could quickly evaporate if the new president cannot form a government with broad political support. "I wouldn't judge the market on one day. Let's wait for the rest of the week. One more speech and the market could drop," said Osama Mourad, the CEO of Arab Finance Brokerage. The market fell 10 per cent over the course of the election on fears it could be derailed or marred by violence. But voting and the announcement of Morsi's win against Ahmed Shafiq, ousted leader Hosni Mubarak's last prime minister, passed off peacefully. "The market is celebrating the lack of violence around this result," said Mourad. "The market was afraid of clashes on the streets." Meanwhile, in Saudi Arabia, the index fell 0.9 per cent in its third straight loss as weak global markets and declines in oil prices weighed on sentiment. It trimmed year-to-date gains to 4.1 per cent, losing most of the 23.8 per cent surge during January and early April. "The news internationally continues to be bad and there are demand concerns from Western and emerging markets, which are causing investor fear," said Muhammad Faisal Potrik, research analyst at Riyad Capital. Equities hit a one-week low and Spanish borrowing costs rose on Monday as investors worried that policymakers at a European summit this week would make little progress in solving the debt crisis that is hurting world economic growth. Brent crude fell briefly below $90, with concerns about faltering global growth hitting investor confidence. Analysts expect lower petrochemical prices for the quarter to weigh on upcoming earnings of related stocks, but impact will be mitigated by lower feedstock prices available for Saudi companies. Petrochemical stocks fell with bellwether Saudi Basic Industries Corp and Saudi Kayan Petrochemical down 1.1 and 1 per cent respectively. Newly-listed Alinma Tokio Marine dropped 8.4 per cent on the second day of trading after its share price jumped to as much as 100 riyals on Sunday, compared to a 10 riyals initial public offer price. Elsewhere, UAE bourses ended mixed as volumes in Abu Dhabi slumped to a one-week low and Qatar closed flat as investors were little encouraged to increase risk. Dubai's index slipped 0.3 per cent, moving within a range of 80 for the past six weeks. Abu Dhabi's index ticked up 0.3 per cent. "Gulf markets have been inflicted with the summer lull - there's a clear lack of direction despite some improvements in Greece's debt situation," said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. Leaders of the three parties in Greece's government will go to Brussels to try to win concessions from European partners over a bailout package as soon as Prime Minister Antonis Samaras recovers from eye surgery, one of them said on Monday. In Kuwait, the index fell 0.7 per cent, slumping to a fresh five-month low ahead of news the government had resigned.
