Egypt Independent

Stock market ends on high note amid increased investor optimism

The Egyptian Stock Exchange

rose on Thursday after the announcement of positive news related to the economy.

This, combined with a brief period of political calm in between the two rounds of voting in the constitutional referendum, has inspired optimism among investors. There is hope that forthcoming stability would provide the opportunity to rebuild state institutions and address the nation’s economic development.

The market capitalization of shares of the companies listed on the Stock Exchange led to an LE2 billion gain, reaching LE9.3739 trillion at the end of the trading day. This raises market gains to more than LE13.7 billion since the beginning of the week.

The EGX30 reversed a downward trend early in the trading day to head back up with gains of 0.43 percent, reaching 5,443 points — its highest level in a month.

The Emirates NBD Bank’s announcement that it reached an agreement to acquire BNP Parisbas Egypt for more than LE3 billion has boosted investor confidence in the Egyptian market, brokers said. The Qatar National Bank’s earlier announcement that it had reached a deal to acquire Egypt’s NGSB for LE14.8 billion also boosted confidence.

Marwa Hamed, a stock markets analyst, said that such deals confirm that the foreign investors’ interest in the Egyptian economy is stronger than might be expected given the ongoing political turmoil.

The success of the first round of voting in the referendum has strengthened the market and created incentive for investors to buy, added stock markets analyst Moatasem al-Shody.

Edited translation from MENA