DUBAI: Cairo's main stock index soared 6.7 percent on Monday, after the central bank devalued the currency, raising hopes that Egypt's foreign exchange shortage might finally be resolved.

In the Gulf, Riyadh's Tadawul All-Share Index fell 1.3 percent to 6,288 points as Brent dropped back below $40 a barrel, prompting a sell-off in the petrochemical sector. The sector's sub-index dropped 2.7 percent.

The insurance sector, favored by local individual speculators, was also hit, with many shares falling more than 3 percent.

Dubai's index dropped 1.5 percent to 3,351 points as traders booked profits, with Dubai Parks losing 5.6 percent, erasing some of its 14.3 percent gain on Sunday. Arabtec fell 2.9 percent and Emaar Properties dropped 1.4 percent.

But Abu Dhabi's largest listed stock by market value, Etisalat, jumped 3.1 percent in the heaviest trade since November, helping lift the index 0.8 percent.

Etisalat had been falling sharply since Thursday, when it said chief executive Ahmad Julfar had resigned and that it would restructure by the end of June. International index compiler FTSE Russell has said it will add Etisalat to its All-World and other indexes after the close of business on March 18, so investors may now be positioning for that.

Doha's index slid 0.1 percent as Gulf International Services, the oil drilling rig provider, fell 1.6 percent.

Egypt's central bank said it had devalued the Egyptian pound to 8.85 per US dollar at a special foreign exchange auction. It had previously set the average bid price at its regular and exceptional auctions at 7.73.

The Cairo index rocketed to 7,004 points, near technical resistance on this year's peak of 7,114 points, in the heaviest trade since at least 2009. It had already risen 7.8 percent last week on signs authorities were moving to ease a foreign exchange shortage that has plagued the economy for years.