Egyptian stocks rise nearly 2.5% after 8 days of falls

Reuters , Wednesday 25 Sep 2019

Egypt's stocks (Reuters)

 Egyptian stocks climbed nearly 2.5% on Wednesday after eight sessions of falls on the back of purchases from Arab and foreign buyers.

The main EGX30 index was up 2.38% at 13,483.15, as of 1000 GMT .

“The market finally took a breather after most stocks reached support levels that became attractive in the absence of negative news,” said Rania Yacoub, chairwoman of 3Way Finance.

Commercial International Bank, which accounts for more than a third of the EGX30’s weighting, gained 3%. Palm Hills rose 5%, Elsewedy Electric 3.9%, Ezz Steel 5.2%, Talaat Mostafa 2.9% and EFG Hermes was up 2.7%.

Prime Minister Mostafa Madbouly said late on Tuesday that Egypt would offer stakes in five or six “large” state-owned enterprises by the end of June 2020, in an effort “to encourage the private sector and citizens to invest”.

The statement came as the stock market tumbled 10.7% in the last three sessions following protests in Cairo and other cities over the weekend, which erased almost all gains made in the year.

Egypt last year announced a programme to sell minority stakes in 23 state-owned enterprises over the next few years, but it was delayed due to turbulence in emerging markets.

“What is happening is just a breath-taking break after three sessions of severe downturn and about eight sessions of consecutive declines,” said Ibrahim al-Nimr, head of technical analysis at Cairo’s Naeem Brokerage.

“The market may continue to correct up to 13,500 points, but what is more important is that, when selling pressures re-emerge, stocks will not reach the lowest price levels recorded in yesterday’s session.”

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