(AFP Photo)
The benchmark index EGX-30 rose 1.04% to reach 6407.1 points at Tuesday’s close, up from Monday’s 6341.28, with the market apparently unaffected by elevated tensions on the commemoration of the 2011 Mohamed Mahmoud Street clashes.
Mohsen Adel, a member of the board of directors of the Egyptian stock market, attributed this increase to the latest upgrade of long term credit ratings from B- to CCC+ for four Egyptian banks by international credit rating agency Standard & Poor’s on 18 November.
“The liquidity in the market has increased and this resulted in an increase in trading volume,” Adel added
The EGX-70 Index, which encompasses small and medium sized companies, inched up 0.04% to 537.55 points, compared to 537.33 on Monday.
The broader EGX-100 Index increased by 0.27% to 895.39 points, up from 892.97 points the day before. The EGX 20 cropped index also increased by 1.09% from 7392.38 points to 7473.24 points
Adel said political stability and economic incentives would help the bourse overcome the bottlenecks it has been witnessing.
“High financial performance for trading companies and economic stability will play a significant role in supporting the Egyptian stock market,” he said.
Should the Mohamed Mahmoud anniversary see the outbreak of violence, “it will make investors more cautious but the stock market will be less affected that before,” said Adel.
The trading day closed with 105 gainers, 64 decliners and 17 unchanged.
