UPDATE: Egypt’s business digest Nov. 13: Bourse gains 9.3 b at closing of Sunday’s trading session
Traders work at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015. REUTERS/Mohamed Abd El Ghany
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CAIRO: No more browsing from site to site, view the top business news stories on Nov.13 here:

Bourse gains 9.3 b at closing of Sunday’s trading session

The Egyptian Exchange continued its upward trend at the close of Sunday’s trading backed by purchase operations by investment funds and foreign institutions, Youm7 reported.

The main benchmark index EGX30 went up 2.14 percent to close at 10,916 points.

Similarly, the small and mid-cap index EGX70 added 2.78 percent to close at 414.74 points, while the broader index EGX100 moved higher by 1.63 percent to close at 996.96 points.

The market capitalization gained 9.3 billion EGP to close at 528.754 billion EGP during the closing session of Sunday.

 

Egypt targets budget deficit of 8.5-9.5 pct of GDP for 2017-18 -fin min

Egypt is targeting a budget deficit of 8.5 to 9.5 percent of GDP for the 2017-18 fiscal year, down from a 12.2 percent deficit for 2015-16, the finance ministry said in a draft budget released on Sunday.

Egypt on Friday secured a three-year $12 billion IMF lending program aimed at reducing its budget deficit and re-launching economic growth.

Egypt’s financial year starts in July.

 

Egypt’s pound strengthens after IMF approves $12 bln loan

Egypt’s pound strengthened on Sunday after the International Monetary Fund approved a $12 billion loan the government hopes will help restore investor confidence and stabilise the currency.

The pound traded at 15 to 16 against the dollar at 1:59 p.m. local time (1159 GMT), up from around 16.3 to 16.8 on Thursday, in line with a newfound appetite among investors who saw the stock market enter its 12th straight session of gains.

Egypt floated the pound on Nov. 3 in a dramatic move welcomed by businesses as the key to unlocking investment.

It devalued the currency by about a third from the former peg of 8.8 against the dollar and allowed it to drift lower.

A severe shortage of dollar liquidity when markets opened for the first time after the float had resulted in low volumes and saw the pound weaken to 18 versus the dollar.

The currency began to recover on Wednesday, after IMF Managing Director Christine Lagarde said she would recommend that the international lender approve the deal.

It strengthened again after the IMF approved the agreement on Friday and disbursed the first $2.75 billion installment.

 

EGX opens Sunday session at positive note

Egyptian Stock Exchange started Sunday session with a collective increase of all indexes, Youm7 reported.

Main index EGX30 rose by 3.12 percent; EGX50 increased by 3.2 percentl EGX20 jumped by 3.13 percent; EGX70 rose by 2.13 percent and EGX100 increased by 2.05 percent.

 

Egypt’s repay of IMF loan starts after 4.5 yrs

Ministry of Finance announced Sunday that Egypt will begin repaying the IMF loan after a grace period of 4.5 years.

According to the ministry’s statement, the loan will be redeemed on 12 equal payments over 10 years.

 

Ajwa for Food Industries Egypt posts Q3 standalone net loss EGP 1.5 mln

Nov 13 Ajwa For Food Industries Co Egypt Sae:

* Q3 standalone net loss EGP 1.5 million versus net profit EGP 8.8 million year ago.

* Q3 standalone net sales EGP 42.8 million versus EGP 41.9 million year ago.

 

MIDEAST STOCKS-Emerging market weakness, lower oil may hit regional shares


Nov 13 Stock markets in the Middle East may pull back on Sunday in line with other emerging market equities, while a retreat in oil prices may add downside pressure.

The MSCI emerging markets index fell 2.9 percent on Friday while Brent crude oil settled down at $44.75 per barrel, off 2.4 percent. It had reached a low of $44.19, the lowest since August.

Gulf bourses that are most exposed to foreign fund flows, including Dubai and Qatar, could pull back in response, while Saudi Arabian petrochemical may could see profit-taking because of weak oil.

Egypt’s main index has soared 25 percent since the central bank floated the currency on Nov. 3, with foreign investors buying relatively aggressively in the latter half of last week, sending the index to fresh eight-year highs in record trading volumes.

However, Egyptian pound values of local blue chips have now largely caught up with their global depositary receipts – Commercial International Bank’s last close of 67.22 pounds, for example, works out to a GDR price of $4.10 at an exchange rate of 16.40 pounds to the dollar, compared to the GDRs’ last close of $4.18.

That suggests the easiest part of the Egyptian stock market’s rally in response to the currency float, the revaluation of blue chips, may be ending.

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