CAIRO: Egypt’s main index rose to its highest daily close since July 21 after the finance minister says the country will sign a $3.2 billion loan agreement with the International Monetary Fund (IMF) next month, traders said.
Finance Minister Mumtaz Al-Saeed confirmed a report in Al-Ahram newspaper that reported Egypt would receive one-third of the funds immediately and the rest within six months after the signing.
Traders said progress on the IMF loan and on the political front indicate Egypt may be getting back on track after a year of turmoil.
"The IMF negotiations and the clearer timetable for presidential elections are boosting confidence in the market. Investors are pouring fresh cash into Egypt," said Chamel Fahmy of Pharos Securities.
An official at the judicial committee supervising elections told Reuters on Sunday that a presidential election will be held in the first week of June, several weeks ahead of the previously announced end-June deadline for the vote.
The index closed 2.9 percent higher at 5,113 points, and real estate stocks led the gains.
"There is bottom-fishing on the market as investors seek cheap stocks for which prices may well boom after elections," said Sherif El-Sweify of Delta Rasmallah Securities.
"I think 2012 will be the year of investment banking in Egypt. Firstly, stocks are highly underpriced, and also there is a broad sentiment of a stabilizing political situation after the announcement of timetables for presidential elections and the writing of the new constitution."
Palm Hills jumped 10 percent, Egyptian Resorts 9.7 percent, and Amer Group 9.5 percent. Talaat Moustafa climbed 5.5 percent.
"There is market talk of potential mergers and acquisitions in the real estate sector, which is boosting the index," said El-Sweify.
Ezz Steel rose 5.7 percent.
