MENA reported that the Egyptian Stock Exchange rose on December 20th 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 EGP 2 billion gain, reaching EGP 9.3739 trillion at the end of the trading day. This raises market gains to more than EGP 13.7 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%, reaching 5,443 points its highest level in a month.
Brokers said that the Emirates NBD Bank’s announcement that it reached an agreement to acquire BNP Parisbas Egypt for more than EGP 3 billion has boosted investor confidence in the Egyptian market. The Qatar National Bank’s earlier announcement that it had reached a deal to acquire Egypt’s NGSB for EGP 14.8 billion also boosted confidence.
Mr 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.