Egypt stocks rise for second day after cabinet reshuffle

Ahram Online , Thursday 24 Mar 2016

Egypt stocks rose for the second consecutive session on Thursday following a cabinet reshuffle that saw 10 new ministers sworn in on Wednesday.

The benchmark EGX 30 index was up 0.7 percent to 7,548 points by the end of the session.

Market bellwether Commercial International Bank (CIB), which accounts for over one-fifth of the EGX30 market cap, saw its share price slide 1.32 percent to EGP 40.35 after a new central bank term limit rule would force CIB CEO Hisham Ezz El-Arab from his position.

The Central Bank of Egypt issued a circular on Thursday limiting the length of the tenure of commercial bank chief executives to a maximum of nine years, a decision that would force several heads of banks from their positions.

Credit Agricole, however, saw its share price jump 4.68 percent to EGP 23.06.

Global Telecom Holding rose 4.72 percent to EGP 2.66, and majority state-owned Telecom Egypt climbed 3.46 percent to EGP 7.78.

In the real estate sector, TMG Holding rose 2.85 percent to EGP 6.49, Emaar Misr for Development climbed 2.26 percent to EGP 2.71, and Palm Hills Development Company was up 2.62 percent to EGP 2.74 by session close.

Six of October Development and Investment (SODIC) fell 0.61 percent to EGP 11.33, while Ezz Steel jumped 5.13 percent to EGP 9.43.

Local investors were net-sellers of EGP 20.7 million according to Bourse data, particularly retail, while foreign investors and institutions were largely net-buyers.

A new cabinet was sworn in on Wednesday by President Abdel-Fattah El-Sisi, with former banker Amr El-Garhy replacing Hany Kadry Dimian as finance minister and former Orascom Construction treasurer Dalia Khorshid succeeding investment minister Ashraf Salman.

Former financial regulator Ashraf El-Sharkawy was appointed to head the newly-formed Ministry of the Public Sector, which will manage eight state holding companies previously in the hands of the investment ministry.

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