Market Update: Egypt stocks rebound after World Bank loan announcement

Ahram Online , Thursday 19 Nov 2015

Egypt's main index was up 2.4% on Thursday after Reuters reported World Bank had agreed to provide a $1bn loan to Egypt in December

File Photo: Traders work at Egypt's Stock Exchange in Cairo July 3, 2013. Cairo (Reuters)

Egypt's stocks rebounded on Thursday following a Word Bank announcement that it would make a $1 billion loan to Egypt next month.

Egypt's benchmark EGX 30 index rose 2.42 percent on Thursday to close at 6,568 points, recovering from a two-year low of 6,407 points reached on Tuesday.

The loan could be the first $1 billion installment of a $3 billion program over the next three years, according to Hafez Ghanem, the World Bank's vice president for the Middle East and North Africa, Reuters reported on Wednesday.

"It would come through sometime in December if everything is fine," he said.

Egypt is suffering from a foreign currency crunch on the back of declining tourism, foreign investment, and other revenue, as its forex reserves had dwindled down to $16.41 billion by October, enough to cover just three months of food and fuel imports.

The majority of the EGX30 shares were in the green, including bellwether Commercial International Bank (CIB) was up 3.39 percent to end the session at LE43.63.

Real estate stocks were also on the rise with Palm Hills Development Company climbing 5 percent to trade at LE2.06, Six of October Development and Investment (SODIC) up 1.95 percent to LE7.83 and TMG Holding up 1.63 percent to trade at LE6.22.

Other blue chips which saw significant gains were Beltone Financial Holding, which rose 4.24 percent to LE3.69, Porto Group which rose 5.13 percent to LE0.4, and Juhayna Food Industries, which saw its share price rise 3.51 percent to LE7.66.

The bourse's main index has lost close to 12 percent of its value since the Russian Metrojet 9268 flight crashed in Sinai on its way from Egypt's Red Sea resort of Sharm El-Sheikh to St Petersburg on 31 October, killing all 224 on board in what Russian and Western authorities have said was a terrorist attack.

Bourse data showed that local institutions were net-buyers on Thursday, while non-Arab foreigners, local retail, and Arab institutions were the main net sellers.

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