Egyptian stocks have seen the biggest rise in the last 5 months, thanks to Mohamed Mursi, the Egyptian President’s decision to revoke the decree which would have expanded his powers in a huge way. The initial decision of implementing this decree created a huge unrest in this African country, the biggest since the elections in last June. Mohamed Salim El Awa, the Islamist politician made the announcement of revoking the decree.
The largest publicly traded company of Egypt, Orascom Construction Industries saw its biggest jump since last June. It actually surged by 5.2% and is currently priced at 235.03 Egyptian Pounds per share. The biggest publicly traded lender of the country, Commercial International Bank Egypt SAE also rose by 5.9%. It has hence, come to its best price since 2nd July and is currently at 34.45 Egyptian Pounds per share. The benchmark stock index of Egypt, The EGX 30 also jumped up by 4.4% and is at 5051.96 now. All of the stocks that operate under EGX 30 saw a high today, except one. More than 77 million shares were traded in the market. The 12-month daily average is 129 million share trades.
Dynamic Securities Brokerage’s trader Ahmed Sarhan stated that the huge gains are suggesting a possible breakthrough for the shares. However, he added that the condition is anything but sustainable. The issue with constitution referendum is yet to be settled and the oppositions are still claiming that the draft constitution is going to favor Islamists. Hence, chances of further violence cannot be overruled altogether.
The opposition is scheduled to protest all over Cairo to protest the draft constitution. However, President Mursi has so far has not accepted the demands of delaying the date of referendum on constitution. The current date scheduled is 15th December. Incidentally, if the constitution is rejected, a new committee will be appointed within the next 3 months so that they can draft a charter, as announced in a Presidential statement.
Among other countries of the Gulf region, the benchmark index of Kuwait jumped by 0.5%. ADX General Index of Abu Dhabi and MSM30 Index of Oman saw surges of 0.6% and 0.4% respectively as well. DFM General Index of Dubai added 0.2%, whereas, Tadawul All Share Index of Saudi Arabia increased by 0.1%. QE Index of Qatar was an exception, falling by 0.1%.