Egypt stocks rally on launch of Gulf investment forum

Ahram Online, Wednesday 4 Dec 2013

Indices rise for first time this month as investors look forward to stronger economic ties with oil-rich Gulf

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

Egypt's benchmark EGX30 index was up 0.6 percent to 6,281 points on Wednesday, buoyed by the launch of an investment conference in Cairo.

The Egypt/GCC Investment Forum, a two-day conference which aims to boost strategic partnerships and economic synergy between Egypt and the Gulf, will be attended by high-ranking Egyptian officials, including Prime Minister Hazem El-Beblawi.

Egypt has witnessed a political and economic rapprochement with Gulf Cooperation Council (GCC) countries, including the United Arab Emirates, Saudi Arabia, and Kuwait, since the ouster of Islamist president Mohamed Morsi in July, with pledges totaling over $12 billion in aid from these nations.

The conference boosted investor confidence as it carries the possibility of new deals to strengthen Egypt's ravaged economy, Ashraf Abdel-Aziz, head of institutional sales at Cairo-based Arabia Online Securities, told Ahram Online.

Egyptian investors were net buyers for LE9.03 million on Wednesday, Arab investors for LE3.4 million, while non-Arab foreigners net sold LE12.4 million worth of stocks.

The majority of stocks in the main index were in the green, with bellwether Commercial International Bank (CIB) up 0.36 percent and leading investment bank EFG-Hermes up 0.61 percent.

Ezz Steel rose 0.14 percent, automaker GB Auto 0.77 percent, and Global Telecom Holding 1.09 percent.

In the real estate sector, TMG Holding gained 0.54 percent and Six of October Development & Investment (SODIC) rose 1.25 percent.

Turnover reached LE238.6 million at the end of the session.

The broader EGX70 registered a rise of 0.54 percent.

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