Egypt's Stocks Bolstered by IMF Loan Prospects

Egypt’s stocks rose significantly, in the first session since the start of the Eid holiday, buoyed by active foreign investors’ trading on positive signs that President Morsi' government is making headway on clinching the International Monetary Fund’s loan by the end of this year. The benchmark EGX30 climbed 1.7 per cent, recording 5.893 points in a session which saw a modest daily turnover worth LE579.4 million, as most domestic investors are wrapping up their Eid holidays on the last official vacation day. Foreign investors were net purchasers for the day to the tune of LE42.2 million. Reuters reported on Monday that the mood of Egypt's financial markets would likely depend this week on the government's ability to secure the $4.8 billion IMF loan.

An IMF team is expected to arrive in Cairo for talks on Tuesday, after the Eid Al-Adha holidays, according to Egyptian and IMF officials. The broader index EGX70 rose by 1 per cent. Almost all heavyweight shares saw gains that were led by the Commercial International Bank and Orascom Construction Industries, which witnessed a rise in shares by 1.2 and 2.4 per cent respectively. Orascom Telecom and Ezz Steel climbed by 1.3 and 1.5 per cent. Property shares Talaat Mostafa Group, Palm Hills and Six of October Development and Investments rose by a whopping 3.7, 3.2 and 2.4 per cent, respectively.