Egypt stocks jump on opposition participation

EGX30 rises almost three pct on news that Egypt's National Salvation Front would take part in Saturday's constitutional referendum Egypt stocks rose by 2.8 per cent on Wednesday as investors showed optimism that political stability was around the corner, especially after the opposition National Salvation Front announced its intention to take part in Saturday's constitutional referendum. "Despite recent clashes and the delay of Egypt's IMF loan, investor confidence improved after the opposition said it would vote in the constitutional poll," Ashraf Abdel-Aziz, head of institutional sales at Arabeya Online securities, told Ahram Online. The National Salvation Front – a coalition of liberal, leftist and nationalist forces – has called on Egyptians to vote 'no' in the referendum. Meanwhile, Egypt has asked the International Monetary Fund to delay approval of a $4.8 billion loan until next month due to current domestic political circumstances, Prime Minister Hisham Qandil said at a Tuesday press conference. The benchmark EGX30, which hit 5,158 points on Wednesday, was bolstered by net-buying on the part of Arab and foreign investors, with both groups making around LE17 million worth of purchases. The broader-based EGX70 index, meanwhile, rose by 4 per cent in a session that saw local investors net-sell to the tune of some LE34.6 million. All of the market's main listed stocks rose in Wednesday’s trading, led by Orascom Construction Industries and Commercial International Bank, which rose by 2.6 and 1.6 per cent. Orascom Telecom and Ezz Steel, meanwhile, jumped by 3 and 5.1 per cent. Property shares, meanwhile, also recorded gains, with the Talaat Mostafa Group, Palm Hills and SODIC rising by 4.6, 5.4 and 3.8 per cent respectively. Total daily turnover on Wednesday stood at LE467.3 million (roughly $75.8 million). From Ahramonline