Stock Market Climbs 1.43 % after CBE Cuts IR

By: Taarek Refaat

CAIRO, Feb. 17 (SEE)- Egypt Stock Exchange (EGX) climbed by 1.43 percent to close at 15198.9 points after ending last week's trading with an increase of 0.24 percent.

Chief Investment Officer at OKAZ Securities Brokerage Ahmed Zakaria said on Sunday that there is a significant relationship between the interest rate and the stock market performance.

"The central bank's decision to cut interest rates last Thursday positively reflected upon the stock exchange market," he added.

The capital market rose at the beginning of today's trading by 2 percent, however, gains of some companies were reduced at the end of the speculation.

"Some of the leading shares were positively affected by the decision, such as Palm Hills, which rose by 7 percent at the trading," he noted.

The Monetary Policy Committee (MPC) had decided on Thursday to cut both the overnight deposit rate to 15.75 percent, the lending rate at 16.75 percent, the rate of the main operation at 16.25 percent, and the discount rate at 16.25 percent.

The volume of trading until the midpoint of the trading reached EGP 620 million, with an expectation of more foreign investment inflows, especially with the listing of Enppi on the stock market.

The Egyptian stocks will benefit from the reduction in interest rates in the coming period, representing an opportunity for traders to gain more profits on the stock market rather than savings.