EGX rebounds after plunge on rate hike, benchmark jumps 1.1%

CAIRO – 23 May 2017: The Egyptian Exchange (EGX) indexes rebounded Tuesday as investors digested a sharp slip in the previous session following an unexpected decision by the Central Bank of Egypt (CBE) to raise interest rates 200 basis points.

The benchmark EGX30 index inched up 1.1 percent, registering 12,792 points at close. CIB, the index heaviest constituent ended 0.5 percent up at L.E. 76.54 ($4.24) per share.
The EGX70 rose 0.33 percent to end at 583.1 points. Further, the all-embracing EGX100 index was also up 0.48 percent to end at 1,363 points.

Market capitalization gained around L.E. 3.9 billion ($216.13 million) totaling L.E. 658.9 billion EGP. The market turnover amounted to L.E. 1.2 billion and foreign traders were the sole net buyers.

In a surprise move on Sunday evening, the CBE decided to surge its overnight deposit rate to 16.75 percent from 14.75 percent and its overnight lending rate to 17.75 from 15.75 percent. This was the first similar action since the CBE raised the rates by 300 basis points the same day it free-floated the pound on November 3.