Traders work at Egypt's Stock Exchange in Cairo (Photo: Reuters)
Egypt’s main index, the EGX30, registered a modest rise on Wednesday following a call by army chief and Defence Minister Abdel-Fattah El-Sisi for a quick transition to democracy.
Egypt's 9th Money and Finance Conference which took place this week also seems to have reassured investors.
The EGX30 inched up 0.29 percent to sit at 5694.01 points, with turnover of a modest LE392 million by the end of session.
"A modest increase in the index is preferable, as it guarantees a balanced upward trend,” Osama Mourad, an independent analyst and former chief executive of Arab Finance Brokerage told Ahram Online.
Speaking to security forces on Tuesday, El-Sisi affirmed the importance of ending the transitional phase rapidly.
Mourad believes investors are also optimistic about the return to stability promised by a government stimulus plan (worth LE22.3 billion) and by the government’s participation in the private sector conference on money and finance which concluded on Tuesday.
Egyptian and Arab investors were net sellers during Tuesday’s market session, at a value of LE17.8 million, while non-Arab foreign investors were net buyers.
In the banking sector, Commercial International Bank increased by 0.47 percent and National Societe Generale Bank (NSGB) by 2.81 percent, while Faisal Islamic Bank of Egypt rose by a modest 0.02 per cent.
Global Telecom Holding was the biggest gainer in the telecommunications sector, climbing 0.67 percent and achieving a turnover of LE16.7 million.
In the real estate sector, Palm Hills Development Company shares decreased by 1.26 percent while TMG Holding achieved a high turnover at a value of LE12.6 million.
Broader indices the EGX70 and the EGX100 dropped by 0.25 percent and 0.07 percent respectively.
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