Egypt's shares rose the most in more than five months after the president Mohammed Morsi cancelled a controversial decree that had expanded his powers and had triggered the biggest protest of his six months in power.
Orascom Telecom, the biggest mobile company in North Africa, gained 1.4 per cent to 3.58 pounds on the Egyptian Exchange. Commercial International Bank, the biggest publicly traded lender, advanced 4.3 per cent to 34.45 pounds. The EGX 30 Index gained 4.4 per cent, the biggest rise since June 25, to 5,051.96 points.
"The political event was interpreted by investors as a positive result," said Wadah Al Taha, the chief investment officer at Dubai-based Al Zarooni Group.
"But it's too early to judge given December 15, people will need to vote for the new constitution."
Egypt's index lost almost 45 per cent last year, when protesters succeeded in toppling Hosni Mubarak. The stock market had shown signs of recovery, rising by as much 39.5 per cent this year, ranking it among the top performing markets this year. In the UAE, the Abu Dhabi Securities Exchange General Index rose 0.6 per cent to 2,690.13, while the Dubai Financial Market General Index added 0.1 per cent to 1,612.67.
Elsewhere in the Arabian Gulf, Kuwait's measure added 0.4 per cent to 5,907.21; Bahrain's index was little changed at 1,043.66; Oman's MSM 30 Index added 0.3 per cent to 5,647.19; Qatar's QE Index was little changed at 8,354.65. The Saudi Tadawul All-Share Index moved up 0.08 per cent to 6,783.55.