Indices of the Egyptian Exchange (EGX) rose on Tuesday to offset their early losses. Market capitalization added nearly EGP 3.3 billion, amid strong buying appetite among local and foreign institutions.
The market was fueled by the report issued by Fitch on Tuesday, in which the ratings agency said the recently announced fuel price hikes are an important step toward reducing subsidies that contribute to Egypt's substantial fiscal deficit - a key rating weakness.
Fitch added that tackling subsidies is a key way of reducing Egypt's budget deficit, which it estimated at 12.1% of GDP in 2013/14 (to end June).
Benchmark index EGX30 rose 1.41% or 117.36 points to close at 8428.73 points. Small and mid-cap index EGX70 also gained 0.74% or 4.48 points to 609.24 points. The broader index EGX100 advanced 1.02% or 10.79 points to 1069.18 points.
Market capitalization rose to EGP 486.835 billion, from EGP 483.544 billion on Monday. Foreign traders were net buyers by EGP 100.4 million, while national and Arab traders were net sellers by EGP 78.9 million and EGP 21.4 million respectively.
Tuesday’s turnover amounted to more than EGP 756 million, generated from exchanging 186 million shares in more than 24.5 thousand transactions.
Retail traders accounted for 54.81% of total trading, while institutions made up the remaining 45.18%.