Egypt Stocks Gain to 8-Month High as Investors Snub Clashes
Egypt’s benchmark stock index closed at its highest level in eight months as investors shrugged off deadly clashes between Islamists and security forces. The nation’s dollar bond yields climbed for a ninth day.
The benchmark EGX 30 Index gained 0.7 percent to 5,765.87, the strongest since Feb. 5, at the 2:30 p.m. close in Cairo. The value of shares traded reached 371 million pounds ($54 million) compared with a one-year daily average of 343 million pounds. Eastern Tobacco, the country’s monopoly cigarettes maker, climbed to the highest since July 10 and Telecom Egypt, the Cairo-based state-controlled company, rose for a fourth day.
At least 51 people were killed yesterday in fighting across the country between police and supporters of former President Mohamed Mursi. In Cairo, protesters were blocked from entering Tahrir Square, the cradle of the January 2011 revolution, where backers of the military were celebrating a national holiday.
“Retail investors expected a wider scale of incidents,” said Mohamed Radwan, head of equities at Pharos Holding, in Cairo. “The market has become resilient to news of casualties. You should see a second level of violence, like explosions or assassinations, to affect it.”
The yield on the government’s benchmark 5.75 percent bonds maturing April 2020 advanced 10 basis points, or 0.10 of a percentage point, to 7.39 percent, taking the nine-day increase to 66 basis points.
To contact the reporter on this story: Tamim Elyan in Cairo at firstname.lastname@example.org