The Egyptian stocks have seen its highest level within the last 3 weeks as the first round of voting on the draft constitution of Egypt passed without much disruption. Incidentally, the Islamist fundamentalist and opposition groups have been seen divided over this draft constitution. According to Ramy El Agamy, who works as the Sales Manager of NBK Capital Securities Egypt, the investors are looking forward to non-violent voting sessions in future. The first round of voting gave them a positive sign and hence, the growth was experienced. He added that to minimize the systematic risk, it is important to have the loan from International Monetary Fund and a political unrest will definitely not help the cause.
The benchmark index of Egypt, The EGX 30 has climbed up to 5303.62 after advancing 2.7%. Hence, the stock index has gained a total of 6.6% in the last 4 days. Only 1 company part of the 30 member index saw a decline today.
The largest publicly traded company in Egypt, Orascom Construction Industries saw a gain of 3.6% and is currently at 252.06 Egyptian Pounds. The biggest lender of the country by market value, Commercial International Bank Egypt SAE also surged by 3.7% and went to 34.08 Egyptian Pounds. The lender has therefore gained 3rd time in the last 4 days.
The shares are currently down by 2.5% in comparison to what it was before Mursi’s decision to issue a decree giving him extra powers. Mursi, who was elected last June as the President, later revoked that decree therefore helping to stop the unrest throughout the country.
The final result of the voting is expected to be declared on 22nd December, after conclusion of the 2nd round. Supporters of Mursi claim that new constitution will pave way for economic reforms, whereas, opposition believe that the new constitution favors Islamists of the country and therefore will set up a backdrop where Muslims will have a dominant role over most of the administrative matters of Egypt.
According to the statistics of Egypt’s Central Bank, it has raised 1.5 billion pounds of its three-month treasury bills and also 3.5 billion pounds of the 9-month notes. The average yield for 91 days have seen a decrease for the first time in last 4 weeks. The yields have gone down by 26 basis points and are at 12.98% now.