Egyptian stocks extended their gains on Thursday, as analysts had expected: the stock market registered significant gains this week on currency devaluation and heavy foreign investments.
The benchmark EGX 30 index rose by 1.77 per cent, closing the day out at 5,734 points. Bourse experts expect that at this rate the stock market could may start recovering to its pre-revolutionary level of six million and 723 points. The broader-based EGX 70 also registered an increase of almost 1.38 per cent.
In line with the trend, out of 182 traded stocks, a considerable 118 registered gains while a mere 34 suffered losses. Trade volume seems to be recovering from its record-low rates of LE 200 million and even lower during the recent constitutional crisis following president Morsi's constitutional declaration on 21 November. At the end of Monday's session turnover reached almost LE 558, a substantial recovery that is nonetheless still below pre-revolutionary rates.
Egyptian and Arab investors were net sellers for the day, offloading some LE 31 million and LE three million respectively.
Foreigners continue to be net buyers, picking up LE 34 million worth of shares. Orascom Construction Industries (OCI), Egypt's largest publicly traded company, rose by 2.38 per cent in Monday trading.
Blue-chip stock Commercial International Bank (CIB) also registered a 2.18 per cent gain. Market analysts attribute significant gains in Global Depository Receipts (GDRs) including OCI, CIB and Orascom Telecom (OT), to their prices becoming attractive to foreign investors as the Egyptian pound continues to plummet against the US dollar.
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