CAIRO: No more browsing from site to site, view the top business news stories on Nov. 23 here:
Egypt clings near 8-year peak
(Reuters) Cairo’s index of the most actively traded shares edged up 0.3 percent, climbing back near an 8-year peak, but the number of trades fell by a third from the previous session.
The index has now climbed 35.5 percent since the central bank ditched the currency peg to the U.S. dollar on Nov 3 and faces strong technical resistance at its record 2008 peak of 12,039 points.
Foreign funds remained net buyers of shares on Wednesday while local and regional traders cashed out, according to exchange data.
For a second day in a row, the broader index has outperformed, closing up 1.7 percent, suggesting that investors are preferring the less liquid names as an attractive bargain.
Heliopolis for Housing and Development soared 10 percent to 81.14 Egyptian pounds ($4.66) after the company announced a four-for-one stock split.
A stock split effectively lowers the share price and increases the number of traded shares. Usually this does little to move prices as total market value is not impacted. But with a depreciating currency, lower share prices become more appealing to investors.
Egypt targets to raise $6 bln from global bonds in 2017: Min. of Finance
Egypt will offer the bond issuance by mid-January, seeking to collect $6 billion in 2017, said Egyptian Minister of Finance Amr El-Garhy in an interview with Bloomberg published on Tuesday.
“We were planning to do it by the end of November, but there has been volatility since the election in the United States…The window is closing because by the second week of December the markets will be very quiet. So it’s either this or maybe by mid-January.” he said.
“The growth comes beyond our expectation especially it comes following the floatation of the currency…the central bank and bank sectors are doing very well,” he said in his interview.
Egypt participates in economic meeting of the African-Arab Summit in Malabo
Egypt participated in the meetings of Ministers of Trade, Economics, Finance in the fourth African-Arab Summit in Equatorial Guinea’s Malabo on Wednesday.
The Egyptian delegation, chaired by President Abdel Fatah al-Sisi, tackled the prospects of economic cooperation and other issues of the mutual concerns. The meeting discussed the agriculture and food security issues, as well.