Nothing to "Fitch" about: Egypt stocks continue to rise after economic outlook upgrade
Egypt’s stocks continued rising on Sunday in their second trading session of the year served by the Fitch rating upgrade for the Egyptian economic outlook.
On Friday, Fitch Ratings raised Egypt's economic outlook from negative to stable, however, the international credit rating agency kept its long-term foreign and local currency sovereign credit ratings at B-. It is the first time that Fitch upgraded Egypt's economic outlook since 2011.
The market’s benchmark EGX30 and the broader index EGX70 rose as Egyptians –who made up 90 percent of the daily trading on Sunday–ended the session as net buyers with LE7 million.
The main index recorded 6,854 points, seeing a daily turnover of the listed securities worth LE431.4 million.
Foreign investors were net sellers with LE6.7 million.
“[Foreign investors] were not influential at all, they represented merely two percent of the trading,” said Eissa Fathi, the deputy head of the securities division at the Cairo Chamber of Commerce.
Fathi added that as Egypt’s constitutional referendum date is coming closer, investor optimism prompted them to push up values of the listed stocks.
The blue-chip stock Commercial International Bank (CIB) increased 1.1 percent, closing at LE33 per share.
Shares in the real estate firms Talaat Mustafa Group (TMG) and Palm Hills Development (PHD) inched up 0.4 and 0.3 percent, registering prices per share LE6.26 and LE2.66 respectively.
Meanwhile, Six of October Development and Investments Company (SODIC) slightly dipped 0.1 percent, closing at LE22,74 per share.
- Spotlight on Saudi Arabia’s "resilient" banking sector
- Lebanese startup's move to global platform paving way for entrepreneurship growth
- Saudi Prince hailed for criticizing country's banks' shortcomings
- Turkey's central bank approach: keep calm and defy Erdogan
- UAE struggles with recovering bad debts, number 'could double’ in next few years