Egyptian stocks rose significantly on Wednesday, rebounding from a steep fall earlier in the week when global markets were shaken by the Chinese equities crash.
The main EGX30 index rose 1.96 percent to 8,106 points, its highest level in over three weeks, having hit a one-year low on 9 July.
The rally is driven by improving sentiment among retail investors ahead of the inauguration of a new shipping route running parallel to Egypt’s Suez Canal next week, says Wafik Dawood, portfolio manager at Compass Capital.
A 72 kilometer-long waterway will be unveiled to the world in a lavish ceremony on 6 August, a year after work began on the $8.4 billion project.
The expansion is expected to more than double Egypt's revenues from the international waterway, a vital source of foreign currency income, to $13.2 billion a year.
The event is taken to signal a possible turnaround in Egypt’s economy, creating positive sentiment among retail investors in particular, says Dawood.
Market bellwether Commercial International Bank (CIB) was up 1.61 percent to trade at LE56.26. Cairo-based EFG-Hermes saw its share price climb 3.50 percent to LE12.12.
Property giant TMG Holding rose 1.51 percent to LE8.09, while Palm Hills Development Company surged 2.90 percent to LE2.48 a share, and developer SODIC climbed 2.53 percent to LE10.52.
The broader EGX70 rose 1.58 percent.
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