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Egypt stocks rally Sunday after credit rating upgrade

Egypt's shares get a boost after last week's profit-taking slump on favourable credit rating action by Standard & Poor's

Ahram Online, Sunday 17 Nov 2013
Egypt stocks
FIle photo: The Egyptian stock market (Photo:Reuters) Share The Egyptian stock market fell by 2.5 percent. REUTERS photo
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Views: 1083

Egypt stocks rallied Sunday in a session that saw Arab investors strong net-buyers.

The main EGX30 index rose 0.76 percent and the broader EGX70 0.60 percent as the total turnover of listed stocks reached LE405 million.

The market was in part reacting to credit rating agency Standard & Poor's raising its long- and short-term foreign and local currency sovereign credit ratings for Egypt on Friday from "CCC+/C" to "B-/B" with a "stable" rating outlook, Ashraf Abdel Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online. 

The rating action was the first upgrade by any international credit agency for Egypt since the country's January 2011 revolution that toppled the regime of Hosni Mubarak.

The vast majority of shares listed in the EGX30 index were gainers.

Market bellwether Commercial International Bank (CIB), and investment bank EFG-Hermes, which both published positive results last week for the third quarter of 2013, rose 0.77 percent and 1.24 percent respectively after ending the last two sessions in the red.

Property shares also rallied, with Six of October Development & Investment (SODIC) gaining 0.61 percent, Palm Hills Development Company 0.81 percent, and TMG Holding 1.45 percent.

Global Telecom Holding rose 0.43 percent and automaker GB Auto, which had reported an 89 percent drop in net income in the third quarter of 2013, saw its share price climb 2.58 percent.

El-Swedy Electric fell 1.3 percent.

Egyptian investors were net-sellers, to the tune of LE69.2 million, followed by non-Arab foreigners, while Arab investors were net-buyers of LE74.1 million worth of shares.

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