Last Update 20:53
Thursday, 14 November 2019

Egypt's market losses accelerate as more banks raise interest rates

Ahram Online , Tuesday 10 Nov 2015
Egyptian stock exchange
A trader works at the Egyptian stock exchange in Cairo, August 23, 2015 (Reuters)
Views: 1504
Views: 1504

Egypt's market continues to fall drastically for the third consecutive session after more banks joined the race to raise interest rates for savings certificates, increasing speculation on the monetary policy.

Benchmark index, EGX30, plunged 4.4 percent on Tuesday’s session to record 6.824 points after falling by 2.8 percent and 2.6 percent the previous session.

On Sunday, Egypt's largest two state-owned banks launched savings certificates for Egyptian pounds at an interest rate of 12.5 percent, above the average 10 percent currently offered by banks.

The move created speculation for a possible floatation of the pound and a possible interest rate hike by the central bank.

On Tuesday, Banque du Caire and SIAB bank also launched saving certificates with 12.5 percent interest rates.

A new central bank governor, Tarek Amer, will take charge at the end of this month, with analysts and businesses speculating a different approach to monetary policy.

Institutions and non-Arab foreign investors were net sellers in the stock exchange on Tuesday. Institutions were net sellers to the tune of LE68 million.

Arabs were net buyers to the tune of LE39 million.

Daily stock turnover registered LE538 million to which market bellwether, Commercial International Bank (CIB), contributed 15 percent. The CIB fell 5.99 percent to LE46.7 per share.

Real estate developer Talaat Moustafa Group (TMG) holding declined 2.01 percent to LE6.45 per share and Orascom Telecom Media and Technology (OTMT) holding dropped 2.67 percent to LE0.73 per share.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.