(Photo by Hassan Ibrahim\DNE File)
The stock market’s benchmark EGX 30 Index hit a 1.02% gain on Sunday, closing at 5,586.65. This represents an 8.06% climb, 416.76 points, from September’s lowest drop on 5 September to 5,169.89.
Mohsen Adel, a member of the bourse’s board of directors, said that there are three main reasons behind the gains, the first of which being the Central Bank of Egypt’s decision to lower interest rates.
“The latest agreement with Kuwait, in which Egypt will receive a deposit of $2bn, also played a role in this gain,” he added.
The perceived return of security, Adel said, as well as continuous economic reform by the government have lowered the “selling appetite” of traders, and increased their interest in purchasing stocks.
The EGX 70 Index, which encompasses small and medium sized companies, increased by 0.89%, closing at 480.42, compared to 476.16 points last Thursday. The broader EGX 100 surged 0.86%, closing at 803.84 points, compared to 796.95 points on Thursday.
The EXG20 Capped Index also witnessed a 1.17% jump and closed at 6536.07.
The Egyptian stock market has become increasingly volatile following the ouster of former President Mohamed Morsi.
On 25 August, the market registered its highest gain since the dispersal of pro-Morsi demonstrators on 14 August only to experience a significant drop on 27 August as a result of US-Syria tensions.
