Egypt Stocks Among Best Global Gainers on Central Bank Plans
Egyptian Stocks Rise Most in the World After Central Bank Pledge
(Bloomberg) --
Egypt’s main stock index was among the world’s best performers after news that the central bank would support the bourse to the tune of 20 billion Egyptian pounds ($1.3 billion).
The EGX30 index climbed as much as 6.8% on Monday in Cairo, before trimming increase to 3% at the close of the third consecutive positive session. That’s the best performance globally after Argentina and Morocco. Eastern Company SAE and ElSewedy Electric Co. surged 5.9% and 11%, respectively, fueling the index’s increase.
After the exchange closed Sunday, President Abdel-Fattah El-Sisi said the central bank will provide the funds to support the stock market, while urging Egyptians to respect strict measures in place to contain the spread of the coronavirus in the Arab world’s most populous nation.
The aid comes after two state-run lenders said last week they’d inject 3 billion pounds into the market. The Egyptian index is still down 28% this year, compared to a 31% drop for the MSCI EM Index.
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