Egypt's stocks rebound over IMF deal
Egypt stocks soared during Wednesday trading as the success of the government in reaching agreement with the International Monetary Fund on a $4.8 loan Tuesday positively affected investors' behaviour.
The benchmark EGX30 gained by 1.8 per cent to close at 5,482.13 points in a session that saw a daily turnover recording some LE376 million.
"The stocks rise was expected. News spread in the market that Egypt had reached an initial loan agreement with the IMF, and had an extended influence on today’s session," Ashraf Abdelaziz, head of institutional sales at the Cairo-based Arabeya Online Securities, told Ahram Online
Foreign investors positively received news of the IMF loan, ending trading as net-buyer with some LE11.6 million.
On the other hand, domestic investors seemed affected by ongoing clashes in Cairo between security forces and protesters ostensibly marking the first anniversary of the Mohamed Mahmoud Street battle of 2011. Domestic investors were net-sellers at LE15.5 million.
Market blue chips Orascom Construction Industries (OCI) and Commercial International Bank rose by 0.5 and 2.7 per cent respectively.
Telecommunication shares gained Wednesday headed by Orascom Telecom, up 2.2 per cent. Telecom Egypt also rose by 2.38 per cent.
Property shares in Talaat Mostafa Group and Six of October Development and Investment Company (SODIC) rose by 2.2 and 0.8 per cent respectively.