Egypt equities

With Egypt’s presidential election approaching fast, representatives from the Egyptian government and financial community travelled to London this week to seek support from international investors for the country’s much needed reform programme.

Speaking at an Egypt day event at the London Stock Exchange on Friday, Hany Kadry, Egypt’s foreign minister, said he hoped to see “massive participation” in the presidential election on May 26 and 27 and parliamentary polls that will follow in the autumn. Read more

Source: Bloomberg

Who says military rule is bad for stock markets? The EGX30, Egypt’s main stock index, is now over 7,700 – a level not seen since mid-2008.

The index has surpassed the previous post-Lehman high before the removal of president Mubarak, which was just over 7,600 in April 2010. Read more

Egyptians queue up to cast their vote on a new constitution in Al-Haram in the southern Cairo Giza district on January 14, 2014.

Egypt goes to the polls – again. This time on a new constitution, which would give the military freedom from civilian oversight. Here are the main news and views. Read more

The news out of Egypt may seem unremittingly bad of late but here’s something to cheer equity investors: the benchmark Cairo index, the EGX30, is back above 6,000 points this week, a level not seen since before the toppling of former president Hosni Mubarak way back in January 2011.

In fact, the EGX30 was one of the best performing indices worldwide in the third quarter this year, rising 20.5 per cent. Nevertheless, its new high may be little more than symbolic. Read more

Here’s a question: why are Egyptian equities and Egyptian CDS spreads moving in tandem? In normal circumstances, you’d expect them to move in mirror image of each other. If equities go up, you’d think investors were optimistic about the country’s prospects (good); if CDS spreads go up, you’d think they viewed default as increasingly likely (bad).

So if both go up, is that good or bad? Read more

Egyptian shares leapt at Thursday’s opening, suggesting investors are happy at the latest turn of events. The benchmark EBX 30 index was up 6.4 per cent as trading started, making up a big chunk of the index’s 9 per cent slide since the beginning of the year.

The surge was the biggest for more than a year and forced a halt to trading, as it broke the Egyptian Exchange’s 5 per cent limit on daily movement in the index. Read more

A reminder – as if any were needed – of the dim view that the markets is taking of the ongoing political crisis in Egypt that led to the ousting on Wednesday of Mohamed Morsi, the country’s first freely elected president.

Yields on Egypt’s 2020 debt, just shy of 10 per cent a day ago, punched through that barrier to hit a new high of 10.44 per cent on Wednesday. Read more

Egyptian debt premiums might be at an all time high (see beyondbrics 1 hour ago), but equity investors are taking a bet that things will improve for Egypt.

The cairo bourse was closed on Monday for a holiday, but opened on Tuesday with a flourish, surging nearly 5 per cent. Read more

Having rallied by about 8 per cent since last month mainly on expectations that the government would reach a deal with the International Monetary Fund, Egypt’s EGX 30 index has not significantly reversed its gains despite the departure of the IMF team this week without an agreement, writes Heba Saleh in Cairo.

The reason for the apparent resilience, analysts say, lies in announcements that Qatar and Libya had agreed to give Egypt $5bn in aid helping to prop up its floundering economy and shoring up dangerously low foreign reserves. Read more

By Andrew Bowman and Rob Minto

This weekend sees large protests in Egypt against president Mohamed Morsi on the second anniversary of the revolution which toppled Hosni Mubarak. Two years on, where has Egypt got to? These four charts provide an insight. Read more

By David Edgerly

The international jury may still be undecided on the development of Egyptian politics and economics, but local investors have already handed down their verdict of enthusiastic support. The Cairo Stock Exchange has been one of the stellar performers this year with a gain of over 40 per cent. Read more

Investors have broadly welcomed Egyptian president Mohamed Morsi’s bid to assert his power over the country’s strong military leaders.

Egyptian equities rose 1.5 per cent on Monday after Sunday’s dramatic announcements and the central bank successfully completed a regular bond auction that netted 5.1bn Egyptian pounds, 100m more than planned.

But the latest developments don’t herald the end of the long-running political conflict between the Muslim Brotherhood backing Morsi and the army. The president has won an important battle but he has not won the war. Read more

The results of Egypt’s presidential run-off may still be in the balance but investors are already reacting with their cash.

On Monday, the EGX30 index fell 3.42 per cent. On Tuesday, it lost a further 4.23 per cent, back to levels of late January and heading south towards eroding all its gains since the start of the year. Read more

The Egyptian regulator has given approval for France Telecom to take almost full control of its Egyptian mobile phone joint venture, Mobinil. The markets were keen on the news, with the EGX 30 index up 2.5 per cent at the close of business.

But with the country on something of a knife-edge, is $2bn to buy out your partner a good deal? Read more

EFG-Hermes, the biggest publicly-traded investment bank in Egypt and the Arab world, has found a potential partner after the battering its stock has suffered in Cairo’s political turmoil. Deep-pocketed Qatar may be coming to its assistance.

EFG and Qatar’s QInvest said in a statement on Monday that they are in talks to create a “strategic alliance”.  While nothing is certain, investors are betting that something will come out of the discussions: EFG stock jumped 7 per cent. Read more

Egypt numbers are hair-raising for investors. Since the beginning of the year its benchmark index has risen nearly 50 per cent, but those invested in Egypt stocks witnessed falls in the same index of 50 per cent in 2011. Investors must now assess whether a healthy recovery is underway or another crash is coming, as a report in Monday’s FTfm explains. Read more

Egypt’s stock market is a paradox. Political tensions are getting worse, the economy is deteriorating and foreign exchange reserves are falling dangerously low. And yet equities are up nearly 40 per cent, the biggest gain in the world for 2012.

Clearly investors are betting that the closer the country edges to economic collapse, the greater the chances of the politicians seeing sense and the IMF leading an early bail-out. But what if they’re wrong? Read more

After losing half their value last year, Egyptian equities have soared in 2012. They ranked top among EMs  in January, buoyed by the peaceful outcome of demonstrations on the first anniversary of the anti-Mubarak uprising.

But after Wednesday’s shocking soccer riots, which left 74 dead, the benchmark EGX 30 dropped as much as 4.6 per cent on Thursday. Could the violence halt Egypt nascent recovery? Citigroup is optimistic that it won’t. Read more

Source: Egyptian Stock Exchange

At last some good news from Egypt’s battered financial markets. Stocks soared on Thursday, with a 7 per cent bounce in the EGX 30 index, after Wednesday’s demonstrations on the first anniversary of the anti-Mubarak uprising passed off peacefully.

That extends this year’s gains to over 22 per cent, making Cairo the world’s second best-performing equity market in $ terms after another recovery story – Hungary (on 24 per cent). But how long can it last,  given the manifest economic and political challenges? Read more

After a week of dire predictions and market turmoil, Egypt’s equity markets saw their biggest single day rise in almost two years on Tuesday. The benchmark EGX index jumped 5.5 per cent as two days of peaceful polling gave investors hope that a new government could be formed and power transferred smoothly from the ruling military council.

But Egypt’s economy is not out of the woods yet and Tuesday’s equities gains did little to reverse the 43.5 per cent fall the EGX index has suffered this year. Voting continues for the next six weeks – surely a stern test of investors’ nerves. Read more