Currency float lifts Egyptian shares

Egypt's currency and interest rate changes sent its stock index soaring. Arabian Gulf bourses ended the day mostly higher.

Shares in Egypt soared yesterday, after the country stunned markets by allowing its currency to float freely for the first time.

The Egyptian central bank said that it was ending exchange rate controls and was raising interest rates by 300 basis points, in moves designed to restore confidence in the Egyptian pound and unlock a US$12 billion loan from the IMF.

The EGX 30 surged by as much as 8.3 per cent before easing to close 3.3 per cent higher, making it yesterday’s best performing global shares index.

Arabian Gulf bourses were mixed, as oil prices recovered some of Wednesday’s losses.

Shares in Saudi Arabia finished the week on a positive note, following minor sell-offs on Tuesday and Wednesday. The Tadawul ended the day 1.1 per cent higher, thanks to gains by Saudi Telecom, NCB and Maaden.

The Dubai Financial Market General Index closed up 0.2 per cent at 3,298.43, lifted by Mashreq.

The bank’s shares had their best day in seven weeks, closing up nearly 6.2 per cent at Dh66.90.

Emaar Properties and DIB also rose, closing up 0.3 per cent and just shy of 0.4 per cent respectively.

The benchmark index in Abu Dhabi closed up 0.4 per cent at 4,281.62, following a rebound by FGB shares.

FGB, the index’s second heaviest weighted stock, closed up nearly 2.2 per cent at Dh11.65, after shedding 1.3 per cent on Wednesday.

The Qatar Exchange was the worst performer in the region yesterday, closing down 1.1 per cent due to falls by QNB and Industries Qatar.