Egypt stocks continue rally after pound strengthens

Ahram Online , Thursday 17 Mar 2016

Staff at the Egyptian stock exchange in Cairo (Photo: AP)

Egypt’s stocks continued their rally on Thursday, after Egypt’s Central Bank let the Egyptian Pound strengthen slightly against the U.S. dollar on Wednesday.

The benchmark EGX30 index had climbed 2.4 percent by mid-session on Thursday to 7,401 points, as foreign investors were the main net buyers to a tune of some EGP 71 million.

Leading investment bank EFG Hermes saw its share price soar by over 15 percent to EGP 10.93 at the time of writing after its board announced it had approved the sale of a 40 percent stake in Credit Libanais, of which EFG Hermes owns a 64 percent stake according to its website, at $33 a share.

Largest listed stock Commercial International Bank (CIB) inched up 0.23 percent to trade at EGP 39.56 after a week of gains.

Egypt’s main index has already climbed 10 percent since the Central Bank of Egypt allowed an overvalued pound to depreciate by 14 percent on Monday, and announced a more flexible exchange rate policy.

The pound then edged up when the regulator sold $1.5 billion to banks on Wednesday in its third special foreign currency auction this week, at a cut-off price of EGP 8.78 per dollar. 

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