Egypt stocks rise 0.8% on cabinet's stimulus package

Ahram Online, Thursday 29 Aug 2013

After dipping for three consecutive sessions, Egyptian shares climbed following announcement of governmental plan to boost domestic economy

Egyptian stock exchange
Traders work at the Egyptian stock exchange in Cairo (Photo: Reuters)

Egypt’s stock market rose on Thursday despite the ongoing speculation about a possible international intervention in Syria which has pushed down other Arab bourses over the past two days.

The main index, the EGX30, climbed 0.8 percent, recording 5,267 points after a stimulus package was announced by the interim cabinet.

The package is worth roughly $3.2 billion in spending on investments projects designed to boost the economy over the coming 10 months.

Some analysts have reservations about the announced measures, however. According to Reuters, Capital Economics said the spending plan might help the economy in the near term, but noted there were implementation risks as the money might get diverted to welfare handouts and state salaries. It said it might be more effective to ease foreign exchange restrictions on private sector importers rather than spend money through the public sector.

The broader index EGX70 also climbed 1.3 percent in a session that saw domestic investors as net buyers with some LE29.8 million ($4.2 million), while foreign investors were net sellers at LE33.6 million ($4.8 million).

The daily turnover of listed securities reached LE230.5 million ($33 million).

The market’s bellwethers Commercial International Bank, Telecom Egypt and Orascom Telecom all gained on Thursday -- 0.1, 2.2 and 0.7 percent respectively.

Real estate developers Talaat Mostafa Group, Palm Hills and Six of October Development and Investment soared 1.2, 2 and 2.2 percent respectively.

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