The Egyptian Exchange (EGX) was back in the green on Monday and market capitalization gained nearly EGP 1.13 billion, powered Moody’s change of its credit rating for Egypt to ‘Stable’ from “Negative’.
The global rating agency also maintained the government bond rating at ‘Caa1’. The agency cited a more stable political and security situation and signs of economic recovery. Moody's said government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsidies, and measures to lift public revenues by a shifting to value-added tax system from a goods and services tax, had improved the outlook. The agency added that the upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years. Egypt's economy grew by 3.7% year-on-year in the fourth quarter, rising from 2.5% in the previous quarter.
Moody's said local investors are showing confidence in the economic recovery of Egypt, adding that strong demand from the recent $8.5 billion issue of Suez Canal investment certificates to retail investors was testament to investor confidence.
The benchmark index EGX30 reversed its early losses, ending 0.13% or 11.02 points higher at 8534.89 points.
The small and mid-cap index EGX70 rose strongly by 1.32% or 7.49 points to 575.95 points and the broader index EGX100 ended 1.01% or 10.57 points higher at 1052.49 points.
Osama Naguib, head of technical analysis, Arab Finance, said the index opened with a decline to the support level of 8470 that was expected to hinder the slide. He added that the index consolidated before session close and more stocks ended in the green, as traded volumes rose slightly.
The benchmark is expected to rebound temporarily towards 8800 points as a response to the previous decline, especially after stocks reached selling saturation levels, according to the analyst.
Monday’s turnover amounted to nearly EGP 644.5 million, generated from exchanging 182 million shares in 29 thousand transactions.
National and foreign traders were net buyers by EGP 4.7 million and EGP 13.2 million respectively, while Arab traders were net sellers by EGP 17.9 million.
The global rating agency also maintained the government bond rating at ‘Caa1’. The agency cited a more stable political and security situation and signs of economic recovery. Moody's said government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsidies, and measures to lift public revenues by a shifting to value-added tax system from a goods and services tax, had improved the outlook. The agency added that the upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years. Egypt's economy grew by 3.7% year-on-year in the fourth quarter, rising from 2.5% in the previous quarter.
Moody's said local investors are showing confidence in the economic recovery of Egypt, adding that strong demand from the recent $8.5 billion issue of Suez Canal investment certificates to retail investors was testament to investor confidence.
The benchmark index EGX30 reversed its early losses, ending 0.13% or 11.02 points higher at 8534.89 points.
The small and mid-cap index EGX70 rose strongly by 1.32% or 7.49 points to 575.95 points and the broader index EGX100 ended 1.01% or 10.57 points higher at 1052.49 points.
Osama Naguib, head of technical analysis, Arab Finance, said the index opened with a decline to the support level of 8470 that was expected to hinder the slide. He added that the index consolidated before session close and more stocks ended in the green, as traded volumes rose slightly.
The benchmark is expected to rebound temporarily towards 8800 points as a response to the previous decline, especially after stocks reached selling saturation levels, according to the analyst.
Monday’s turnover amounted to nearly EGP 644.5 million, generated from exchanging 182 million shares in 29 thousand transactions.
National and foreign traders were net buyers by EGP 4.7 million and EGP 13.2 million respectively, while Arab traders were net sellers by EGP 17.9 million.
Source:
Mubasher Exclusive
