Egypt Stocks Post Biggest Two-Day Gain Since 2012 on Devaluation - Bloomberg Business

Egypt Stocks Post Biggest Two-Day Gain Since 2012 on Devaluation - Bloomberg Business:

"Egyptian stocks rose in the biggest two-day advance in almost four years following the nation’s decision Monday to devalue the currency the most since 2003. The government’s dollar bonds rose.
The EGX 30 Index bucked declines across most Middle Eastern markets to rise 1.9 percent to close at 7,139.44, the highest level since November and close to its 200-day moving average. Traders exchanged about 335 million shares, about 60 percent higher than the six-month average. The index has added 8.8 percent since the central bank weakened the currency 13 percent on Monday and said it would adopt a more flexible exchange rate.
The devaluation diminishes at least one of the risks that has left foreign investors wary of Egypt since the 2011 uprising and exacerbated a dollar shortage at a time when security concerns have been driving away tourists, one of the country’s biggest sources of revenue. The move came less than a week after a senior government official said Egypt is preparing to start loan talks with the International Monetary Fund, a suggestion that central bank Governor Tarek Amer denied. The bank will offer $1.5 billion at an exceptional auction on Wednesday, it said in a statement on its website Tuesday."



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