Egypt’s business digest Oct. 5: EGX closes in green, market capitalization gains 1.1b EGP
The Egyptian Exchange - YOUM7 (Archive)
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EGX closes in green, market capitalization gains 1.1b EGP

The Egyptian Exchange (EGX) indices went up at the close of Wednesday’s trading session backed by purchase operations by institutions and foreign investment funds, Youm7 reported.

The main benchmark index EGX30 went up 2.07 percent to close 7,881.1 points, while the mid- and small-cap index EGX70 rose 0.13 percent to close at 352.14 points. Similarly, the broader index EGX100 grew 0.41 percent to close at 799 points.

Market capitalization added EGP 1.1 billion to reach EGP 413.1 billion.

 

IMF to discuss Egypt loan at future board meeting, not this week

(Reuters) – The International Monetary Fund will discuss Egypt’s $12 billion loan programme at an executive board meeting, not at its annual meeting this week, Egypt’s deputy finance minister told Reuters on Wednesday.

Local media had speculated that the IMF would sign off on the programme, aimed at plugging Egypt’s budget deficit and balancing its currency markets at the annual meeting in Washington from Oct.7-9.

“Egypt’s loan will not be discussed at the annual IMF meeting because this meeting is not intended for executive board members. The executive board meeting will be scheduled later on,” Mohamed Meait said.

Egypt secured a preliminary agreement for the loan in August, but head of the IMF mission in Cairo Chris Jarvis told Reuters at the time that Egypt would have to secure $5-6 billion in bilateral financing before the board grants final approval.

 

CBE governor to take part in IMF, WB annual meeting in Washington

Central Bank of Egypt (CBE) Governor Tarek Amer traveled to the US on Wednesday to take part in the 2016 annual meetings of the boards of governors of the International Monetary Fund (IMF) and the World Bank (WB) group, currently held in Washington, D.C., October 3-9, Youm7 reported.

On Tuesday, Amer met with Prime Minister Sherif Ismail to discuss Egypt’s bid to obtain a $12 billion loan from the IMF.

Minister of International Cooperation Sahar Nasr also is participating at the event.

The Board of Governors for each institution consists of one governor from each of the institutions’ member countries, typically the finance minister, central bank governor, or minister of development.

During the meetings, the Boards of Governors decide on major policy issues related to the future work of the two institutions, which are subsequently implemented by their respective Executive Boards.

 

Egypt to import 500,000 tons of rice, 400,000 tons of sugar to boost reserves

Egypt will look to import 500,000 tons of rice and 400,000 tons of sugar in order to boost strategic stocks and keep prices down, the prime minister said.

The government buys commodities and sells them at subsidized prices to the country’s poorest citizens. But prices of sugar and rice have been climbing on Egypt’s local market in the past few weeks partly due to shortages, traders have told Reuters.

The additional imports are part of an “urgent plan to guarantee the stability of strategic stocks of essential food items and ensure there is at least six months in stock at all times,” a cabinet statement said.

Egypt said in August it would buy 450,000-550,000 tons of sugar in local and foreign markets to cover needs until the end of February, when the local harvest begins.

It has since purchased 170,000 tons in tenders held by its state grain buyer GASC and is set to hold a tender for an additional 100,000 tons on October 8.

 

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