EGX bullish for 2nd day, benchmark climbs 0.7%

CAIRO – 24 May 2017:The Egyptian Exchange (EGX) indexes rallied for a second straight session by the close of Wednesday, as the market recovered a sharp dip on the Central Bank’s unpredicted decision to raise interest rates 200 basis points.

The benchmark EGX30 index went up 0.72 percent, registering 12,884 points at close. CIB, the index heaviest constituent shut 0.84 percent up at LE 77.18 ($4.26) per share, up from 76.54 ($4.24) per share yesterday.

The EGX70 added 0.48 percent to end at 586 points. Further, the all-embracing EGX100 index was also up 0.68 percent to end at 1,372 points.

Market capitalization gained around LE 5.7 billion ($314.9 million) totaling LE 664.6 billion. The market turnover amounted to LE 990 million 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.