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Egypt rebounds after four-day drop, Saudi mostly stable

The Egyptian stock index tumbled as much as 10 percent earlier this week amid great uncertainty

Published: Updated:

Egypt's stock market rebounded early on Thursday after dropping for four days because of fears of a possible currency devaluation, while Saudi Telecom continued rising sharply in a mostly flat market.

The Egyptian stock index tumbled as much as 10 percent earlier this week amid great uncertainty about the central bank's intentions towards the currency.

Some bankers believe authorities are preparing to float the pound - a step that could help to solve Egypt's hard currency shortage in the long run, but would be risky in the short term.

But there was cautious buying-back of stocks on Thursday morning with the index climbing 0.9 percent. Real estate firm Amer Group added 2.3 percent despite reporting a 56 percent plunge in third-quarter net profit.

Developer Medinet Nasr climbed 3.4 percent after reporting its nine-month profit fell to 154 million pounds ($19 million) from 162 million pounds a year ago.

Auto distributor GB Auto gained 2.5 percent after saying its third-quarter profit jumped nearly 90 percent compared to a year earlier despite foreign currency shortages that have strained operations.

Investment bank EFG Hermes lost 0.4 percent, however, after reporting a rise in third-quarter net profit to 120 million pounds from 100 million pounds.

The Saudi index edged up 0.1 percent after adding 2 percent on Wednesday as it rebounded from a technical support level.
Saudi Telecom, which surged its 10 percent daily limit on Wednesday after pledging to pay a minimum quarterly dividend for the next three years, rose a further 5.0 percent.