CIB helps Egypt rebound; Saudi market flat
CIB - Photo courtesy of lotusgroup

DUBAI :A bounce in shares of Commercial International Bank (CIB) helped Egypt’s stock market rebound from near technical support early on Wednesday, while Saudi Arabia’s market was flat.

CIB, a traditional favourite of foreign investors, is down 22 percent from its level three weeks ago, hit by concern that Egypt might soon devalue its currency. Tourism revenues there are sagging in the wake of last month’s apparent bombing of a Russian pasenger jet over the Sinai.

However, the stock climbed 1.2 percent to 41.85 Egyptian pounds in the first hour of trade on Wednesday, helping the Egyptian stock index gain 0.5 percent to 6,354 points. It has minor chart support on last week’s low of 6,302 points.

Analysts’ sentiment remains positive towards CIB – 12 analysts rate it a “buy” or “strong buy”, four a “hold” and none a “sell”, accoding to Thomson Reuters data. Their median target price is 64.00 pounds.

The Saudi stock index fluctuated narrowly around Tuesday’s close. Saudi Basic Industries rebounded for an eighth straight day, rising 0.5 percent.

Saudi Automotive Services rose 1.5 percent after saying it had repaid early 20 million riyals ($5.3 million) of a loan from Arab National Bank; the debt had been due in February 2017. The company said it had paid the debt with internal resources in order to reduce financial costs.

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