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EGX gains EGP 9bln this week buoyed by Moody’s rating upgrade

EGX gains EGP 9bln this week buoyed by Moody’s rating upgrade
The Egyptian Exchange (EGX) rose this week and added nearly EGP 9 billion in capitalization, backed by the news that international credit ratings agency Moody's on Monday upgraded Egypt's outlook to Stable from Negative, thus making the country's struggling economy more hospitable to international investors.
Moody's decision was based on improved political stability, fiscal consolidation and signs of growth recovery, but limited by high fiscal deficits and government debt levels. The ratings agency also affirmed Egypt's government bond rating at Caa1.
Moody's saw 'strong support from external donors' as a factor for upgrading the country's outlook.
Moody's also affirmed the ratings for Egypt's backed global bonds at Aaa, foreign currency bond ceiling at B3, foreign currency deposit ceiling at Caa2 and local currency country risk ceiling at Ba3.
Egypt’s benchmark index rose 2.4% or 203.78 points during the week to end at 8797.29 points, compared with 8593.51 points last week.
The small and mid-cap index EGX70 also added 3.5% or 20.28 points to 592.48 points, compared with 572.2 points.
The broader index EGX100 gained 2.6% or 26.87 points to close at 1077.31 points, compared with 1050.44 points.