Egypt stocks extend longest rally since December on devaluation

Egyptian stocks advanced for an eighth day after the central bank devalued the currency to lure foreign investors back to its markets.

The EGX 30 Index rose 3 percent as of 10:22 a.m. in Cairo to 6,757.15, the highest level in two months. All but four of the index’s 30 members climbed as more than 124 million shares traded, about four-times the six-month intraday average. Commercial International Bank Egypt SAE’s 4.9 percent gain was the biggest contributor to the gauge’s increase.

The nation, which is grappling with a dollar shortage, devalued its currency about 13 percent at a local dollar sale on Monday. Fears of a sudden devaluation of the pound as well as difficulties in repatriating funds had been among the concerns cited by investors for avoiding the Egyptian market. Many sold off the nation’s assets after uprisings toppled two presidents in five years.

Commercial International Bank, which accounts for almost 40 percent of the stock index, climbed to 39.20 Egyptian pounds, the strongest level in more than two months.

– Bloomberg