Egypt blue-chip stocks hit three-and-a-half-month high after holiday

Egyptian blue-chip stocks on Wednesday rose to their highest in nearly three and a half months, extending the previous session’s gains after a three-day Eid holiday.

The rise came after Egypt reported better-than-expected inflation data for the month of July.

Egypt’s blue-chip index EGX 30 surged 2.5 percent to 14,541 points, a level not seen since May 5. The country’s biggest lender Commercial International Bank (COMI.CA) climbed 2.8 percent, while El Sewedy Electric (SWDY.CA) jumped 8.1 percent.

Egypt reported last week that its headline inflation rate had fallen to its lowest in nearly four years, dropping to 8.7 percent in July and defying analyst expectations since it followed a

fresh round of fuel subsidy cuts that pushed domestic fuel prices up by 16 percent -30 percent.

The inflation data provides enough room for the central bank to embark on monetary easing. Last month the monetary policy committee kept key interest rates on hold at 15.75 percent and 16.75 percent for overnight deposit and lending, respectively.

Source: Reuters