Egypt’s new IMF loan agreement stimulates stock market

Alyaa Stohy
2 Min Read

Trading volumes on the Egyptian Exchange (EGX) reported a large increase, supporting an EGX30 rise of 4.56%, while market capitalisation reached EGP 17.3bn.

The rise comes on the back of Egypt having reached a new agreement, worth $5.2bn, with the International Monetary Fund (IMF), which whetted the appetite of local dealers to trade.

The benchmark index EGX30 closed at 11,108 points, while the EGX70 EWI rose 3.09% to 1,259 points, and the EGX100 EWI rose 3.31% to 2,028 points.

The EGX50 EWI rose by 3.63% to 1,648 points, while the EGX30 Capped rose by 4.07% to 12,681 points.

The total trading on shares amounted to approximately EGP 1.8bn, with Egyptians and foreigners net buyers and Arab as net sellers.

Green dominated most of the shares traded, as 145 of the total 176 shares traded rose, while 13 fell, and 18 remained unchanged.

Ibrahim Al-Nimer, Head of Technical Analysis Department at Naeem Brokerage, expected that the market will continue to rise towards 10,800. In the case of stability, it will go towards 11100 points, with Commercial International Bank (CIB) shares reaching EGP 73.

He noted that several factors support the market’s performance this week. These include the IMF’s approval of a new credit line for Egypt, an easing of measures to confront the coronavirus, and the improvement of the US dollar’s exchange rate.

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