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Egypt stocks up with investors confident on 'positive' news

Foreign reserves increased for the second consecutive month, while the market responded positively to the increased likelihood that El-Sisi will run for the presidency

Ahram Online, Wednesday 5 Mar 2014
Egypt's Stock Exchange in Cairo (Phooto:Reuters)

Egypt's stocks continued their rally Wednesday as news developments positively impacted investors, led by probability of Field Marshal Abdel-Fattah El-Sisi running for the presidency and the increase of the country’s foreign reserves for the second consecutive month.

The Central Bank of Egypt announced that net international reserves rose to $17.3 billion at the end of February.

The main EGX30 index rose 1.1 percent recording 8,025 points in a session that saw Egyptians net sellers of some LE32 million ($4.6 million).

Arab and non-Arab investors, who represented around 20 percent of the market Wednesday, were net buyers of LE25 million ($3.5 million) and LE7.8 million ($1.1 million) respectively.

The broader EGX70 index also inched up 0.6 percent.

Most listed shares gained, led by the heavyweight stock Commercial International Bank (CIB) that rose 1.4 percent closing at LE36.8 ($5.2) per share.

CIB stated earlier on the day that it would distribute a cash dividend of LE1 ($0.14) per share by 20 March.

Real estate developers Talaat Mustafa Group (TMG), Palm Hills Development (PHD) and Six of October Development and Investment (SODIC) gained 1.7 percent, 2.9 percent and 1.2 percent registering LE8 ($1.1), LE3.4 ($0.49) and LE24.5 ($3.5) per share respectively.

Telecommunication shares Telecom Egypt (TE) and Global Telecom (GT) rose 0.5 percent and 0.2 percent recording LE15 ($2.1) and LE4.7 ($0.68) per share respectively.

The daily turnover of listed securities reached LE1 billion ($0.14 billion).

Egypt's financial regulator, as part of a broader effort to invigorate the country's financial markets, lifted a ban on brokerage firms and fund managers trading shares listed overseas.

The market watchdog introduced the ban in June 2012, saying such deals exposed investors to risks it could not monitor. Traders at the time said the restriction could be aimed at limiting transfers of hard currency abroad.

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