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Egypt stocks to jump on currency float – traders
(Reuters) – Stock markets in Egypt look set to rally in massive trading volume on Thursday after the central bank floated the Egyptian pound, traders and equity analysts said.
The central bank said it had floated the pound and hiked interest rates by 300 basis points to rebalance currency markets. Bankers told Reuters they had been informed that the central bank would set an initial guidance rate of 13 pounds to the dollar at a sale at 1300 local time (1100 GMT), compared to the previous official rate of 8.88 pounds.
The central bank also said in a statement that it would abolish the priority list for imports and phase out monetary financing of the budget deficit over coming months.
“This is very encouraging news. The stock market would love this news because the bottleneck has finally been relieved,” said a Dubai-based analyst.
An equities trader in Cairo said: “There is a wave of buy orders we are receiving at the moment. I think this will outdo the rally in March.”
In mid-March, the central bank devalued the pound to 8.85 per dollar from 7.73 and simultaneously pumped nearly $200 million into the dollar-starved banking system. The stock market rallied 6.7 percent in very heavy trade that day.
Economists believe a more flexible exchange rate mechanism could help unlock billions of dollars in foreign investment.
The Dubai analyst, however, said that some foreign investors were likely to remain cautious about putting money into Egypt for now until they saw how well Egyptian authorities managed the float, and because of uncertainties overhanging emerging markets such as the U.S. presidential election.
NBE, Banque Misr, to offer 18-month certificates of deposit at 20 pct, 3-year cds at 16 pct -bank chiefs
(Reuters) – Egypt’s two largest state-owned banks will offer 18-month certificates of deposit at 20 percent and three-year certificates of deposit at 16 percent, the National Bank of Egypt and Banque Misr chiefs told Reuters on Thursday.
The move came after the central bank announced it floated the Egyptian pound earlier on Thursday, setting a guidance level of 13 pounds to the dollar, nearly 48 percent higher than the rate offered since March.
Egypt’s dollar bonds rally after Cairo floats currency
(Reuters) – Egypt’s dollar bonds rallied across the curve on Thursday, with some issues rising around 2 cents after the country floated its currency the pound.
The move devalued the pound by 47.7 percent to an initial guidance level of 13 pounds to the dollar and was bolstered by a 3 percentage point hike in interest rates following weeks of turbulence.
Tradeweb data showed Egypt’s 10-year government bond issued last year up 2.2 cents in the dollar while 2020 and 2040 maturing bonds rose and 0.7 and 2 cents respectively.
Egypt’s average yield premium over U.S. Treasuries shrank by 29 basis point on the EMBI Global bond index to 479 bps, the narrowest in almost a month .
Egypt central bank hikes interest rates 300 basis points
(Reuters) Egypt’s central bank said on Thursday it had floated its pound currency and hiked interest rates by 300 basis points in a move to rebalance currency markets.
Bankers told Reuters they had been informed that the central bank would set an initial guidance rate of 13 pounds to the dollar at a sale at 1300 local time (1100 GMT) and allow free bids and offers while the market converges on a real price.
The central bank also said in a statement that it would abolish the priority list for imports and phase out monetary financing of the budget deficit over the coming months.
2% increase in workers’ number in 2015/2016: CAPMAS
The number of workers reached 5.77 million in Egyptian governmental sector in 2015/2016 compared to 5.89 million persons in 2014/2015, with an increased by 2 percent, said the Center Agency for Public Mobilization and Statistics (CAPMAS) in a report on Thursday.
“-The number of male workers reached 4.61 million in 2015/2016 compared to 4.54 million in 2014/2015, increased by 1.6%,” the report read. Meanwhile, the number of female workers declined by 14 percent to reach 1.162 million in 2015/2016 compared to 1.35 million in 2014/2015.
Egypt, Serbia discuss cooperation in project of reclaiming 1.5 mln feddans
Egyptian Minister of the International Cooperation Sahar Nasr met with the Serbian ambassador to Cairo Dragan Bisenic, discussing the bilateral cooperation in several fields, particularly in agriculture sector, the ministry said in a statement on Thursday.
Bisenic expressed his country’s interest in participating in the project of cultivating 1.5 million feddans in Egypt, the statement added.