Egypt bourse gets a boost from IMF loan talks

28/07/2016 05:51 AST

Egypt’s stock market was the best-performing in the world yesterday after the Egyptian government announced it was in discussions to receive an IMF loan to kick-start its ailing economy.

The EGX30 Index rose 4.9 per cent to finish above 7,900 points, the largest increase of all major world stock markets, after the finance minister Amr El Garhy said late on Tuesday that Egypt was "nearing the final stages" of talks for a US$12 billion loan with the IMF aimed at reducing a critical dollar shortage in the country.

Over the past year, the EGX30 has risen by a paltry 0.3 per cent. Pioneers Holding for Financial Investments was the index’s biggest gainer, rising 10.2 per cent on the day, followed by Egypt Financial Group-Hermes, which rose 9.8 per cent.

Arabian Gulf stocks broadly flat yesterday as weak oil prices continued to drag on most local indexes. The Dubai Financial Market General Index was down 0.8 per cent at 3,509.90.

It was brought down by du, which fell 1.8 per cent to close at Dh6.80, and Dubai Islamic Bank, which fell 0.9 per cent to close at Dh5.38 despite posting a 3 per cent increase in second-quarter net profit, broadly in line with analysts’ forecasts.

In Abu Dhabi, the ADX was up by a marginal 0.1 per cent, led by gains from Abu Dhabi Commercial Bank, which rose 2.9 per cent to close at Dh6.67, and RAKBank, which gained 2.7 per cent to close at Dh5.25.

In Saudi Arabia the Tadawul fell 0.6 per cent, led by retreats at Etihad Etisalat (Mobily) and ­National Commercial Bank.

The National