EGX Gains EGP 2.7 Bln, Benchmark Opens 1.44% Higher Backed By Morsi’s Speech

Backed by Egyptian President’s speech vowing to boost economy and to have a dialogue with the opposition, the Egyptian Exchange (EGX) has posted early gains of EGP 2.7 billion during Thursday’s opening session. The capital market has amounted to EGP 369.363 billion, according to data compiled by Amwal Al Ghad at 11:11 a.m. Cairo time (09:11 GMT).

“I will exert my utmost efforts, together with you, to boost the Egyptian economy, which is facing big challenges but also has big opportunities for growth,” President Mohamed Morsi said. “I will make all the necessary changes needed for the task of growth, development and productivity.”

The EGX indices opened in green.

The main index, EGX30 climbed by 1.44% to 5376.97 p. EGX20 surged by 1.73% to 6199.82 p.

Meanwhile, the mid- and small-cap index, the EGX70 pushed up by 1% to 475.05 p.  Price index EGX100 rose 1.03% to 794.53 p.

This was after trading in 107 listed securities; 6 declined, 77 advanced; while 24 keeping their previous levels.

The local as well as Arab buying transactions contributed to EGX’s early gains as they were net buyers seizing 72.69% and 12.71% respectively, of the total markets, with a net equity of EGP 4.557 million and EGP 3.569 million excluding the deals.

Meanwhile, the non-Arab foreigners were net sellers seizing 14.6% of the total markets, with a net equity of EGP 8.127 million excluding the deals.

President Mohamed Morsi of Egypt took responsibility on Wednesday for “mistakes” during the run-up to ratification of the new Constitution and urged Egyptians to appreciate the fierce disagreements about it as a “healthy phenomenon” of their new democracy.

Appealing for unity after the bitter debate over the charter, which was finalized by his Islamist allies over the objections of opposition parties and the Coptic Christian Church, Mr. Morsi pledged in a televised address to respect the one-third of voters who cast ballots against it. “This is their right, because Egypt of the revolution — Egypt’s people and its elected president — can never feel annoyed by the active patriotic opposition,” he said, bobbing his head between the camera and the lectern as he read from a prepared text. “We don’t want to go back to the era of the one opinion and fabricated fake majorities.”