Egyptian stocks advanced to the highest level in five months, led by gains in basic materials shares, after China said exports rose 25.1 percent in September and the Federal Reserved signaled more economic stimulus.
Ezz Steel, the country’s biggest manufacturer of the metal, gained 3.3 percent to 20.21 Egyptian pounds, the highest since May 19. Sidi Kerir Petrochemicals Co. climbed 4.1 percent to 13.8 pounds, also a five-month high. Egypt’s benchmark EGX30 Index rose 1.1 percent to 6,900.97 at the 3:30 p.m. close in Cairo, the highest level since May 13.
“All our basic material stocks are up because we think we’re going to see more demand from China and India,” said Tamer Nigm, head of sales and trading at Cairo-based Watheeqa Securities Brokerage. “It matches the growing inflows we’re seeing from investors in emerging markets.”
China’s customs bureau said exports rose 25.1 percent in September, joining reports today showing gains in Japanese machinery orders and Australia’s consumer confidence in signaling the recovery in the Asian-Pacific region is strengthening.
The MSCI Emerging Markets Index added as much as 1.5 percent, on course for its biggest increase in a month. Federal Reserve policy makers said in minutes of their Sept. 21 session released yesterday that last month they were prepared to ease monetary policy “before long.”
To contact the reporter on this story: Ahmed A Namatalla in Cairo at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com