May 22 (Reuters) - Egypt’s stock market fell heavily in the first ten minutes of trading on Monday after the central bank increased interest rates unexpectedly.
The EGX 30 was down 1.8 percent with all but three of the 30 constituents declining. Real estate-related companies were hardest hit, with shares in Palm Hills Development Company down 4.7 percent.
A Monetary Policy Committee meeting on Sunday night increased the central bank’s overnight deposit rate to 16.75 percent from 14.75 percent and its overnight lending rate to 17.75 percent from 15.75 percent.
This was the bank’s first rate increase since an aggressive rise of 300 basis points in November.
The broader EGX 100 index was down 0.9 percent.
Reporting by Celine Aswad; Editing by David Goodman