Sunday, 12 December 2010

Egypt Shares Gain on View Central Bank May Cut Interest Rates, Led by CIBE - Bloomberg

Egypt shares rose to the highest level in almost three weeks on speculation the central bank may cut interest rates after inflation eased in November. Qatar’s benchmark advanced.

Commercial International Bank Egypt SAE, the country’s biggest publicly traded bank, led the gain and Six of October Investment & Development SAE surged to a more than two-year high after the Cairo-based real-estate developer said it approved a five-for-one stock split to increase liquidity. The EGX 30 Index advanced for a third day, increasing 0.6 percent to 6,916 at the 2:30 p.m. close in Cairo. In the Persian Gulf, Qatar’s benchmark rose 0.5 percent, while the Bloomberg GCC 200 Index slipped 0.1 percent.

“We’re seeing the market react to the unexpected drop in the inflation rate” in Egypt, said Tamer Nigm, head of sales and trading at Cairo-based Watheeqa Securities Brokerage. “There’s speculation the central bank may cut interest rates as a result.”

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