MIDEAST STOCKS-Egyptian market keeps sliding on FX fears; Gulf rebounds | Reuters

MIDEAST STOCKS-Egyptian market keeps sliding on FX fears; Gulf rebounds | Reuters:

"Egypt's stock market went on
sliding on Monday because of fears of a currency devaluation and
higher interest rates, while most major Gulf markets rebounded.

The Egyptian equities index, which sank 2.6 percent
on Sunday, lost a further 2.8 percent on Monday. Strong U.S.
economic data at the end of last week suggested a rate hike
there next month, pressuring the Egyptian pound.

Meanwhile, Egypt's two largest state banks launched Egyptian
pound savings certificates with a high 12.5 percent interest
rate. Traders speculated this could be part of preparations for
the central bank to abandon a slow, managed depreciation of the
pound and instead engineer a large, one-off devaluation."



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