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. Continue reading »
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. Continue reading »
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. Continue reading »
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. Continue reading »
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. Continue reading »
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? Continue reading »
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. Continue reading »
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. Continue reading »
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? Continue reading »
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. Continue reading »
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? Continue reading »
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. Continue reading »
Egypt’s markets tumbled again on Tuesday morning following another day of protest which culminated in the Egyptian cabinet offering its resignation to the ruling military council. Egypt’s headline EGX index fell 1.3 per cent in early morning trading, dropping to its lowest point since March 2009, when it hit 3389 points. It is currently trading at 3749.5.
Monday had already seen big losses on Egyptian markets – the EGX fell 3.6 per cent – as protests against the military-led government erupted in Tahrir Square over the weekend, fueling investor fears that election scheduled for November 28 would not bring calm or certainty to the country. Continue reading »
Egypt risks being expelled from the MSCI Emerging Markets Index if the Cairo stock exchange fails to open on Wednesday – as it has promised for the nth time since trading was suspended on January 27.
Even if the exchange keeps its promise this time there is no guarantee of safety. Any sustained lack of access for foreign institutional investors – caused, for example, by what seems the inevitable triggering of circuit breakers – will increase its chances of expulsion. Forced selling of Egyptian stocks has all the makings of a self-fulfilling prophecy. Continue reading »