Egypt Shares Rebound 0.7 Percent

Egypt’s stocks rebounded, Wednesday, buoyed by positive news from the Central Bank of Egypt and the US government that the economy is recovering, just one week after dropping for three consecutive sessions. The main index EGX30 rose by 0.7 percent recording 5.656.13 points driven by the central bank's monthly report, which confirmed that the state’s FDI grew by an impressive 66 percent in the fourth quarter of the fiscal year 2011/12 over the previous quarter. FDI reached $1.9 billion in the quarter ending June 2012, up from $635 million recorded in the quarter ending March.

"The rise of FDI helps assuage investors’ panic after the rumour of an Egyptian armed intervention in Syria" said Eissa Fathy, the head of securities division at Cairo's Chamber of Commerce. Fathy added that the American government's attempts to send economic aid to Egypt helped stimulate the market. The US State Department announced Monday it would work with Congress to try to unblock about $450 million in economic aid for Egypt in two tranches. The broader index EGX70 rose 0.3 percent in a session where Egyptians and Arabs were net-buyers with LE5.5 million and LE15.8 million respectively. Foreign investors sold about LE22.1 million.