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Egyptian bourse hits 6 month high after interest rates cut

A second consecutive rate cut and a shortening of curfew hours have boosted investor appetite

Ahram Online, Monday 23 Sep 2013
Bourse
File photo: Traders work at Egypt's Stock Exchange in Cairo (Photo: Reuters)
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Egypt's main stock index hit a six-month high on Monday, rising 1.09 percent to reach 5,643 points as investors reacted to positive signs regarding the country's security situation and its economy.

Egyptian investors were net-buyers at LE27.7 million, while Arab and other foreign investors were net-sellers as turnover of listed stock on the EGX30 strengthened to LE634 million.

"Investor appetite is driven by the calmer situation on the streets and the lowering of interest rates," Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online.

The Central Bank of Egypt cut interest rates for the second time since August on Thursday, slashing the lending and deposit rate by 50 basis points in response to weakening inflation.

Egypt’s annual urban headline inflation fell to 9.7 percent in the twelve months to August 2013, down from 10.3 percent a month earlier, figures from the Central Agency for Statistics and Mobilisation (CAPMAS) showed earlier in September.

The military-imposed curfew, in force in fourteen governorates since mid-August, was also shortened by two hours on every day except Friday, indicating rising confidence on the part of the authorities regarding the security situation.

The majority of EGX30 stocks were in the green, with trading being spread over many shares.

Property share TMG Holding rose 1.21 percent and Six of October for Development and Investment (SODIC) 1.96 percent.

Commercial International Bank shares rose 0.24 percent and Egyptian Financial Group-Hermes Holding Company 1.02 percent.

Global Telecom Holding, formerly Orascom Telecom Holding, gained 2.28 percent.

The broader EGX70 index rose 0.68 percent.

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