Major stock indices rose at the end of Wednesday’s trading session and the capital market earned more than LE5 billion, backed by Morgan Stanley’s decision to keep the Egyptian Stock Exchange in the Emerging Markets Index MSCI.
The main EGX30 index rose by 1.65 percent or 141.63 points to break the 8,700-point barrier with 8,708.69 points, the highest since 10 August 2008, the small and medium stocks EGX70 index rose by 0.30 percent or 1.05 points to 608.62 points, and the broader EGX100 index rose by 1.14 percent or 12.07 points to 1,068.92 points.
The capital market earned LE5 billion to close at LE493.779 billion in transactions of LE1.7 billion.
Morgan Stanley, one of the largest financial institutions in the world, based its decision on recent positive developments in the Egyptian market and a significant increase in foreign exchange reserves that has stabilized exchange rates.
China and South Korea were also kept in the index.
Stock Exchange Chairman Mohamed Omran welcomed Morgan Stanley's decision, which would raise confidence among investors, especially foreigners.
He said the recent Central Bank policies to overcome obstacles facing foreign investors in terms of transferring profits abroad were encouraging for Morgan Stanley.
Sherif Samy, chairman of the Financial Supervisory Authority, added to it the Central Bank’s proper management of cash reserves.
“Also, the constitutional amendments and the presidential elections led to a gradual return of security and stability,” he said.
Edited translation from Al-Masry Al-Youm
