Egypt Stocks Rise to 5-Month High on Rate Cut; Saudi Index Gains - Bloomberg

Egypt Stocks Rise to 5-Month High on Rate Cut; Saudi Index Gains - Bloomberg:

"Egypt stocks headed for the highest close in five months on bets the central bank’s first interest rates cut in four years will help boost economic growth.
The benchmark EGX 30 Index surged 2.5 percent to 5,508.78, poised for the highest since Feb. 27, at 12:29 p.m. in Cairo. The measure has gained 0.9 percent this year, compared with a jump of 17 percent for the Bloomberg GCC 200 Index, of the biggest companies in the Persian Gulf. Six of October Development & Investment climbed 5.7 percent, leading the list of 27 gainers, while Commercial International Bank Egypt SAE, the country’s biggest publicly traded lender, surged to the highest since January.
The central bank cut the benchmark deposit and lending rates to address “downside risks” to the economic growth outlook and reduced the rates by 50 basis points to 9.25 percent and 10.25 percent, respectively. The cut will probably boost banks and other financials, Cairo-based EFG-Hermes Holding SAE said in an e-mailed report today. The Egyptian economy is facing its worst economic slump in two decades, with the median of 17 economists estimating growth this year of 2.1 percent."

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