Stocks hit 44-month high on Sisi and stimulus news

The Egyptian Stock market hit a 44-month high Tuesday. The rise comes one day after Defense Minister Abdel Fattah al-Sisi was given the green light to run for president by the Supreme Council of the Armed Forces and the announcement that a stimulus package would be announced within the coming days.

The EGX 30, which makes up roughly 80 percent of listed Egyptian stocks, was up 1.53 percent on the day. It closed at 7368.46, after hitting a high of 7372.31 just before 2 pm. 150 of the 186 companies listed on the exchange made gains.

Consumer gains in sectors indicate investors feel confident that the economy will expand in the coming year. The travel and leisure, basic resources, and personal and household products sectors were those to make the largest gains.

At an investment conference earlier in the day, Finance Minister Ahmed Galal said that a second stimulus package worth LE30 billion was almost ready to be announced and was only awaiting figures from the Petroleum Ministry.

It wasn’t clear how much the stimulus announcement played into investor confidence. The plan has been in the works since the first package was announced in August, and the second installment was slated to be announced this month. Stocks shot up just after opening, indicating that the news about Sisi’s potential candidacy played a larger role.