Traders work at Egypt’s Stock Exchange in Cairo on December 8, 2013. ( Photo:Reuters)
Egypt's stocks had a good day on Wednesday after index provider MSCI confirmed that it was retaining Egypt's spot on its emerging markets index.
The main EGX30 index rose 1.65 percent to reach 8,709 points while the broader EGX70 rose 1.05 percent, with daily turnover hitting LE1.08 billion as investors reacted positively to the announcement, which was made on Tuesday.
In June 2013, MSCI, whose indices are tracked by $7 trillion worldwide and $1.3 trillion in emerging markets alone, said fears about getting foreign currency out of Egypt due to its acute political conditions had deterred investors – but that it had earmarked Egypt for exclusion should the situation worsen.
Egypt has been showered with billions of dollars in loans and grants from the Gulf since the ouster of Islamist president Mohamed Morsi in July 2013, shoring up foreign currency reserves, with promises of further aid.
In its annual market classification review, MSCI confirmed Egypt's position among MSCI emerging markets.
"The market had known for some time now that this would be the case," Mohamed Radwan, head of equities at Pharos Holding, told Ahram Online. "But the confirmation still gave investors renewed hope," he said, adding that over 25 listed companies witnessed a trading volume of over 1 million shares each in Wednesday's session.
Non-Arab foreign investors were net-buyers, to the tune of LE64 million, while Egyptian investors were the main net-sellers for the session.
Market bellwether Commercial International Bank (CIB) witnessed the highest turnover value in the main index – LE105.9 million – rising 2.49 percent to trade at LE37.43.
Real estate player Six of October Development and Investment Company (SODIC) jumped 4.55 percent to trade at LE31.94 a share. Palm Hills Development Company rose 1.81 percent to LE4.50 and TMG Holding gained 1.94 percent to trade at LE9.47.
Orascom Telecom Media and Technology Holding (OTMT) rose 1.52 percent to LE1.34. Global Telecom Holding was up 1.6 percent to close at LE5.70 a share.
Cairo-based investment bank EFG-Hermes, whose share price has risen dramatically since the announcement last week of a tender offer on 20 percent of its shares at LE16 a share by a consortium led by Egyptian tycoon Naguib Sawiris, inched up 0.07 percent to LE15.38.
On Monday evening, the head of Egypt's financial regulator told Reuters that the offer submitted did not meet the regulatory requirements.