Egypt Stocks Rise 1 pct on IMF Loan Talks

Egypt stocks rose Thursday on the back of mounting investor confidence driven by ongoing discussions between Egypt and the IMF over the terms of a proposed $4.8 billion loan deal, offsetting Wednesday's losses. The benchmark EGX30 index rose by 1 per cent for the day to reach 5,215.65 points. "Confidence appears to have returned to the Egyptian market," Walaa Hazem, asset manager at Cairo-based HC Securities, told Ahram Online.

The broader-based EGX70 index, meanwhile, rose by 2.7 per cent, bolstered by LE12.4 million worth of purchases by individual investors. All of the market’s blue-chip stocks ended the week in the green, led by Commercial International Bank and Orascom Construction Industries, which rose by 0.7 per cent and 0.6 per cent respectively. EFG-Hermes, Egypt’s largest investment bank, achieved the day's highest turnover – some LE49.6 million – to rise by 2.4 per cent, closing the day out at LE11.6 per share. Property developers Talaat Mostafa Group and Palm Hills, meanwhile, likewise performed well, rising by 1.5 per cent and 3.2 per cent respectively.

The controversial Ezz Steel was also among Thursday's top gainers, rising in value by an impressive 4 per cent. According to Ashraf Abdel-Aziz, head of institutional sales at Arabeya Online Securities, Ezz Steel's performance defied expectations since former company chairman Ahmed Ezz – currently serving a ten-year jail sentence for corruption – now faces fresh accusations of tax evasion. Notably, Orascom Telecom was the day's sole heavyweight loser, slipping slightly by 0.2 per cent. Total daily turnover on Thursday stood at LE619.5 million, "almost hitting a three-month high," said Abdel-Aziz.