Egypt's stocks up on prospective investments (Photo: AP)
Egypt's tentative steps towards political and economic stability were reflected in Tuesday's positive stock market performance, which saw the benchmark EGX30 index rise by 0.8 per cent to reach 5,325 points.
"It's a breakpoint; the index might surpass 5,400 points on Wednesday, indicating the positive investment atmosphere," Mohamed Metwally, equity trader at Cairo-based Prime Securities, told Ahram Online.
Metwally went on to say that investor optimism appeared to have finally been restored, with Tuesday's trade session witnessing the highest daily turnover – some LE796 million – since March.
The broader-based EGX70 index, meanwhile, rose by 1.1 per cent for the day.
Egyptian President Mohamed Morsi is hoping to bolster the national economy with a $4.8 billion loan from the International Monetary Fund and a strategic visit to China, from which he hopes to lure both investment and tourists to Egypt.
Even though foreign investors constituted net sellers on Tuesday, offloading some LE17 million worth of stock, they nevertheless injected more than LE200 million into the market via trading. "This is a sign of confidence," Metwally commented.
Egyptian investors, meanwhile, were net buyers on Tuesday to the tune of some LE56 million.
All the market's blue-chip shares ended Tuesday's trading in the green, led by Commercial International Bank – Egypt's largest private bank – which rose by 1.9 per cent to record the day's highest turnover (LE131 million).
Orascom Telecom and Orascom Construction Industries also saw gains of 1.6 per cent and 0.9 per cent respectively.
The country's biggest steel producer, Ezz Steel, meanwhile, rose by 0.5 per cent on news that its former chairman, Ahmed Ezz – currently serving a jail term for financial offences – is no longer being accused of monopolistic practices.
Luxury property developers Palm hills and SODIC, for their part, rose by 0.4 per cent and 1.3 per cent respectively, while the Talaat Mostafa Group fell by 1 per cent for the day.
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