Egypt Stocks See Gains on Back of IMF Visit

The local stock exchange saw healthy gains as Egypt concluded yet another round of talks with the International Monetary Fund (IMF). The benchmark EGX30 index rose 1.23 per cent for the day to reach 5,804 points. Daily turnover, meanwhile, rose to LE620 billion ($95 billion), suggesting renewed market optimism. A delegation from the IMF visited Egypt on Monday to resume talks over a proposed $4.8 billion loan. The loan is seen by many as a much needed lifeline to support Egypt's ambitious state budget and contain the current currency crisis.

Palm Hills Development, Egypt's second largest listed real estate firm, led the market on Tuesday, rising 2.33 per cent and accounting for some LE72 million in turnover. Commercial International Bank was no less active, gaining 2.85 per cent to close the day out at LE37.94 per share. It registered LE68 million in turnover. Out of 179 shares traded, 99 gained while 58 lost value; another 22 remained unchanged.

Egyptian investors were the session's primary sellers, registering LE71 million in net sales. This reflects a degree of uncertainty that continues to pervade Egypt's political and economic outlook. Non-Arab foreign and Arab investors were net purchasers for the day at LE40 million and LE30.7 million respectively. Orascom Construction Industries (OCI), the market's largest share, gained 1.26 per cent and saw LE43.8 million in turnover.