DUBAI Dec 19 Egypt's stock index
jumped 2.5 percent in heavy trade by mid-afternoon on Monday as
the Egyptian pound depreciated against the U.S. dollar, and on
news that a state-owned bank signed a loan with a big Chinese
bank, portfolio managers said.
Twenty-five of the 30 most liquid Egyptian shares rose with
Telecom Egypt and Global Telecom Holding
each surging their 10 percent daily limits.
The Egyptian pound was being bought for 19 pounds per
dollar against around 18.8 earlier in the day on the back of
higher demand for the greenback amid a shortage in banks,
bankers told Reuters.
Overall, many investors consider currency weakness a
positive for the stock market in the short term because it makes
prices more attractive for foreign investors, and may drive
local funds into stocks as a hedge against inflation.
"The dollar rate is keeping up the appetite" for stocks
among foreign funds, said Wafik Dawood, portfolio manager at
Also, Banque Misr signed a memorandum of understanding with
Industrial and Commercial Bank of China for a $500
million loan aimed at boosting dollar liquidity and financing
joint Egyptian-Chinese projects.
(Reporting by Celine Aswad; Editing by Andrew Torchia)