Arab purchases push Egypt’s stocks up by 1.7%

Egyptian stocks closed Tuesday with gains worth 4.2 billion Egyptian pounds (US$536 million). Benchmark index EGX 30 climbed up 1.7 percent as Arab investors made net purchases, after shares dropped to attractive prices.

Market capitalisation has recorded 392.639 billion pounds during the closing session of Tuesday.

EGX 30 reached 5,983 points up from 5,908 points the day before. Yet, EGX 70 for small and medium enterprises retreated by 0.9 per cent, and the broader EGX 100 dropped by 0.5 per cent.

Arab investors recorded net purchases of 51.8 million pounds, while foreign and Egyptian investors recorded net sales valuing 4.4 million pounds and 47.3 million pounds, respectively.

Global and Arab markets largely faced a decline today as oil prices continued to slide.

The stock market’s main index had dropped on Monday by 1.4 percent as local companies were affected by Sunday’s decision to increase tariffs on a range of imports in addition to the falling oil prices.

The decision marked the latest efforts by the authorities to curb dollar spending on imports as the country struggles with a currency crisis.

Egypt aims to reduce its import bill by 25 percent in 2016, from $80 billion in 2015.

Source: Aswat Masriya