Egypt stocks support push for key IMF loan
dubai/cairo — Egyptian stocks rallied a seventh day on bets an unprecedented decision to float the pound will help cement a $12 billion loan from the International Monetary Fund. The currency weakened.
The EGX 30 Index surged 6.1 per cent, extending the longest winning streak since March. Members of the benchmark gauge traded at the most expensive in almost 17 months based on future earnings, as a technical indicator rose further into overbought territory. Stocks in Dubai fell 0.6 per cent, while those in Saudi Arabia added 0.8 per cent.
Since it was floated on Thursday as part of efforts to reform one of Africa’s biggest economies and seal the IMF lifeline, the pound has slumped about 45 per cent to 16.15 per dollar at 3:28pm in Cairo.
“No one expected such an aggressive and positive move” from the central bank, said Mohamed Ebeid, the head of securities brokerage at EFG-Hermes Holding, a Cairo-based investment bank. “Sentiment and outlook is positive. We’re far from the market’s peak.”
Commercial International Bank Egypt was the biggest contributor to gains, climbing 7.3 per cent.
Stocks in Dubai and Qatar followed emerging markets lower as investors weighed the prospect of Donald Trump winning the US presidential election. The DFM General Index closed at the weakest in three weeks and Qatar’s QE Index slipped 0.1 per cent. Abu Dhabi’s ADX General Index erased earlier declines to finish 0.2 per cent higher.
Oman’s MSM 30 Index added 0.1 per cent, its first gain in 12 days. Kuwait’s SE Price Index rose 0.6 per cent and Bahrain’s BB All Share Index closed 0.4 per cent higher.
Saudi Arabia’s Tadawul All Share Index advanced a second day, rising to 6,106.31. The benchmark gauge has been the best performer in the world after Venezuela’s since the kingdom sold $17.5 billion in dollar bonds last month. — Bloomberg > SEE ALSO PAGE 32