Egypt’s bourse dropped to a two-month low yesterday on escalating political tension ahead of the first anniversary of President Mohamed Mursi’s presidency on June 30, while Gulf markets were mixed in muted trade ahead of a long weekend.

Cairo’s benchmark fell 2.9%, slumping to its lowest level since April 7.

Heavyweight Orascom Telecom lost 4.6%, down for a fourth session since Russian firm Altimo withdrew an offer to buy out minority shareholders.

EFG Hermes dropped 6.7% to its lowest level in eight years — extending losses since index compiler MSCI removed it from its emerging market index. A planned takeover by Qatar’s QInvest was suspended in early May.

Egypt Kuwait Holding (EKH) tumbled 9.2%, — its last trading day before being removed from the MSCI index.

In Saudi Arabia, Sahara Petrochemical gained 2% and Saudi International Petrochemical (SPICHEM) added 2.6% after the two firms said they were in initial talks on a potential merger.

The Zamil Holding Company Group, one of the kingdom’s most prominent family businesses, is a major shareholder in both companies.

Food firm Savola Group jumped 5.3% and the banking sector index also supported, rising 0.2%.

The kingdom’s benchmark gained 0.4% to 7,613 points, a fresh 13-month high.

In Dubai, Dubai’s measure climbed 0.2%, up for a first in the last three sessions since Sunday’s 54-month peak.

Dubai Financial Market rose 3.6% to a 43-month high ahead of an MSCI decision next week on possible upgrade for UAE to emerging market status.

Emaar Properties fell 1.7% to its lowest level since May 26 after the Indian government accused its local joint-venture of violating foreign exchange rules with investments worth $1.5bn.

Abu Dhabi’s benchmark climbs 0.8% to 3,599 points, its highest close since October 2008.

Kuwait’s benchmark fell 0.7%, declining for a fifth session in six. Investors have booked profits since the market hit a 53-month high last week.

Elsewhere, in Oman, the index advanced 0.7% to 6,498 points, whereas in Bahrain the index gained 0.7% to 1,209 points.

UAE, Kuwait and Oman’s bourses will be closed for trading today for a holiday marking Isra and Mi’raj.