Egyptian stocks posted their biggest three-day rally in more than six months after the central bank moved to ease the country’s dollar shortage and repay foreign investors waiting to repatriate their cash.
The EGX 30 Index rose 2 percent in Cairo, taking its advance since Tuesday to 6.7 percent and closing at the highest level in three weeks. About 642 million Egyptian pounds ($82 million) changed hands on Thursday, or 47 percent more than the market’s three-month daily average.
Investors are betting new Central Bank Governor Tarek Amer is making the right moves to alleviate a dearth of hard currency that has crippled the economy since the 2011 uprising that toppled President Hosni Mubarak. The regulator said this week it’s paying more than $500 million to clear the queue of foreign investors trapped in the country, and that it will soon boost the amount of dollars sold to banks to meet the needs of importers.
“Market sentiment is turning positive because of the steps the central bank is taking to resolve the foreign exchange shortage," said Hesham Wafa, a Cairo-based institutional sales trader at Mubasher Trade. “We’ve yet to see how effective those policies will be, but the new central bank governor is giving signals that he’s more flexible than his predecessor."