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Tuesday, 29 September 2020

Egypt's bourse extends gains on global markets rebound

As markets recover from an earlier scare on interest rates, Egypt's main index sees a boost in Thursday trading

Ahram Online , Reuters , Thursday 27 Aug 2015
Egypt's stock market (Photo: Reuters)
Views: 1263
Views: 1263

The Egyptian stock market continued to achieve gains Thursday as global and regional markets rebounded after a US Federal Reserve policymaker downplayed the possibility for an interest rate hike.

Egypt's benchmark EGX30 index gained 2.99 percent to reach 7,078 points while daily stock turnover recorded LE406.1 million.

New York Fed President William Dudley said Wednesday that arguments for a September rate increase "seems less compelling" than they had only weeks ago, given the threat posed to the US economy by recent market turmoil.

Markets around the world plunged earlier in the week as a slump in Shanghai shares fuelled worries over China's economic health. Some calm returned after Beijing moved to ease policy late on Tuesday.

Chinese shares, the epicentre of recent financial market tremors, rose in early trading, with the CSI300 index adding 2.5 percent and the Shanghai Composite Index gaining 2.1 percent. The indexes had plunged more than 20 percent over the past week.

A rebound in oil prices also lifted regional markets, with Saudi Tadawul gaining 2.98 percent and the Dubai financial market rising 4.03 percent.

Crude oil rebounded amid a general thaw in global risk aversion. U.S. crude futures bounced 2.3 percent to $39.50 a barrel. The contracts had slumped to a 6-1/2-year low on Monday, dogged by supply glut woes and worries of a hard landing by China's economy. Brent added 2.4 percent to $44.16.

Institutions were net buyers in the Egyptian market to the tune of LE28 million.

Almost all EGX30 stocks were in green in Thursday's session with Pioneers Holding achieving the biggest hike of 8.21 percent to reach LE6.96 per share.

Market bellwether Commercial International Bank (CIB) achieved the highest turnover at LE49.2 million, rising 2.02 percent to LE48.3 per share.

The broader EGX70 index was up 3.58 percent.

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