[ad_1]
Cairo – Mubasher: The Egyptian Central Bank's decision to cut interest rates will have a positive impact on improving the liquidity of the Egyptian stock market, according to a report released Friday by Beltone Research.
The report emphasizes that the decision gives a high value to Egyptian equities as the central decision is the main motivation for the Egyptian market and will pave the way for higher share prices.
"We are seeing good momentum in the trading of certain securities, benefiting mainly from the rate reduction decision likely to lead the market upward, notably eight stocks: Ezz Steel, Ezz Dekheila, Ghabbour Auto, Palm Hills, Sodic, Nasr City. Housing and Heliopolis Housing. , And Orascom Construction ".
It expects some companies to benefit directly from lower trading rates. After the improvement of the Egyptian market.
According to the report, forecasts are based on strong growth in profitability offered by Egyptian equities by 20.6% in 2019, compared to 9% on average in the Middle East and Gulf countries and 8.6% in Africa. North.
He also pointed to convincing stock valuations, with interest rate cuts being one of the main drivers of the upward market trend, the other two being:MSCI / FTSE / EGX30).
The MPC decided to reduce the deposit and lending rates as well as the main transaction price by 150 basis points, bringing them down to 14.25%, 15.25% and 14.75%, respectively..
Credit and discount rate were also reduced by 150 basis points to 14.75%..
This represents the removal of 450 basis points out of the 700 basis points raised by the Central Bank of Egypt since the introduction of the pound in 2016.
appointments:
The report forecasts a fall in the Egyptian interest rate of 4% .. and a positive performance of the pound sterling
Exports from Egypt to G7 countries reach $ 3.8 billion in the first half of the year
Infographic: $ 24.7 billion in remittances in the Gulf in the first quarter
In response to Beijing decision, Trump announces tariff increase on Chinese products
Beginning of the second session of the Omar al-Bashir trial for corruption
G7 summit begins as fear of historic failure
Urgent: Central Bank of Egypt decides to cut interest rates by 1.5%
[ad_2]
Source link
