CAIRO: Egypt’s main index, EGX30, rose 1.9 percent to its highest in over a month, buoyed by optimism that foreign states will help bolster the finances of Egypt’s interim government, traders said.
US President Barack Obama pledged last week to relieve Egypt of $1 billion of debt and to guarantee another $1 billion in borrowing to finance job creation and infrastructure.
Saudi Arabia then agreed on Saturday to provide cash-strapped Egypt with about $4 billion to help bridge its funding gap, which was widened by the unrest that forced former president Hosni Mubarak out of office.
"The market’s reacting positively to all the news of foreign aid being
poured into the country," said Mohamed Radwan, head of equities at Pharos Securities.
All but one stock was up, with Ezz Steel leading the way, jumping 6.9 percent. Commercial International Bank rose 3.1 percent, Palm Hills 3.6 percent and SODIC 3 percent.
The European Bank for Reconstruction and Development also said on Saturday it would explore how to direct funds to Egypt and other Arab states.
"I think we’re on the right track to see quite a relief on the economy and the pressure being lifted on equity markets," said Radwan, noting that financial stocks in particular are likely to benefit from the injection of cash.
Orascom Telecom rose 3.2 percent after being suspended from trade at the start of the session for breaching an upward limit.
