Stock exchange closes on a rise

Egypt's stock exchange closed on Wednesday on a climb. The main EGX 30 index rose by 0.72 percent, and the EGX 70 and EGX 100 followed the trend with 0.63 and 0.52 percent increases.

It is the fourth consecutive day of growth for the EGX 30, which has risen by 5.3 percent. Investors seemed to have regained confidence in the future, as this growth partially compensated for the losses following the events of mid-August.

The EGX 30 lost 8.4 percent between August 13 and September 5.

Despite bomb attacks this past week in Cairo and Sinai, optimism regarding the overall stabilization of the political situation seems to prevail. Demonstrations by supporters of ousted President Mohamed Morsi have significantly decreased in numbers and violence.

Meanwhile, the government has announced a broad stimulus plan of LE 22 billion to redress the economy. The Egyptian economy grew by 2.3 percent in 2012/13 according to the Ministry of Planning, which is barely the rate of population growth.

Foreign reserves have significantly recovered thanks to Gulf aid packages. They amounted to US$18.91 billion by the end of August.

The downside is a significant increase of foreign debt, which has increased by $5billion in one year.