By: Heba El-Kordy
Cairo – Mubasher: The banks sector saw a bullish performance in Wednesday’s trading session, bolstered by the positive indicators announced by the International Monetary Fund (IMF).
Hany Amer, senior equity analyst at MubasherTrade, attributed the significant performance of the banks sector’s stocks to the positive indicators revealed by the IMF on Tuesday.
The banks sector is expected to lead the Egyptian Exchange (EGX) over the coming period, along with the fertilisers and tourism sectors, Amer highlighted.
Approving the final form of the Central Bank of Egypt’s (CBE) law will support the performance of the sector over the next period, which will force about six banks to increase its capital, the analyst added.
The EBE on Wednesday surged to its highest levels since July 2008 by 10% to EGP 13.75, with a turnover of EGP 13.2 million.
Likewise, the UNB rose to its highest levels in six years or since 24 January 2011, rising 9.89% to EGP 8.89, with a turnover of EGP 4.7 million.
By the end of Wednesday’s trading session, Suez Canal Bank topped the banks sector’s rising stocks by 7.08%, followed by Union National Bank - Egypt (UNB) and Export Development Bank of Egypt (EBE), which gained 6.43% and 6.16%, respectively.
The heavyweight Commercial International Bank – Egypt (CIB) closed 0.37% down to EGP 81.25.
The banks sector closed Wednesday’s session marginally down by 0.04% to 6,422.94 points.
Regarding the CBE’s monetary policy committee meeting to discuss interest rates, the analyst forecasted the CBE to turn to interest rate fixation and start lowering the rates in November, which will positively affect the banks sector’s performance.
Translated by: Mai Ezz El-Din
