MIDEAST STOCKS-Egyptian blue chips surge on inflation beat, robust earnings - Reuters:
Egyptian blue-chip stocks had their strongest day in
nearly six months on Thursday as better-than-expected July inflation data and a
host of strong corporate earnings buoyed investors ahead of a three-day
religious holiday starting Sunday.
Egypt's headline inflation rate fell to its lowest in nearly four years,
dropping to 8.7% in July, defying analyst expectations since it followed a fresh
round of fuel subsidy cuts that pushed domestic fuel prices up by 16%-30%.
"It's great news for the markets because it reinforces hopes of interest
rate cuts in August. I think the central bank now has enough room to restart its
monetary easing policy going forward," said Allen Sandeep, head of research at
Naeem Brokerage.
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