Cairo stock index jumps 2% at opening; financials lead

Egypt’s stock market surged in early trade on Sunday, led by financial companies’ shares, on hopes that the economy will benefit from last week’s devaluation of the Egyptian pound.

The blue chip index was up 2.4 percent after five minutes of trade while the broader EGX100 index climbed 2.0 percent. On Thursday, the blue chip index had risen 3.4 percent in an initial response to the devaluation.

Commercial International Bank, the biggest bank, jumped 5.2 percent while investment bank EFG Hermes climbed 3.0 percent. The buying was mainly by local investors; many foreign fund managers said the devaluation was unlikely to cause them to rush back into Egypt, given continued uncertainty about the economy.

Source: Reuters