Egypt's Market at highest in 6 ½ years on Pound devaluation

Egypt's market achieved its highest level since July 2008, lifted by foreign buying at the earlier trade as the Central Bank continues to devalue the pound, a financial analyst told Ahram Online.

Benchmark index, EGX30, increased 0.92 percent on Wednesday to record 10,045 points with daily stock turnover reaching LE792 million.

"Foreigners are encouraged by the Central Bank's measures to devalue the pound in a bid to eliminate the black market," said Eissa Fathy, vice head of the securities division at Cairo Chamber of Commerce.

Egypt's Central Bank, which sets the exchange rates at which banks can trade, has devalued the pound to 7.53 per dollar from 7.14 per dollar over several auctions since January 18th.

The Central Bank move aims at narrowing the gap between the unofficial rate and the official rate to end the black market soon, Hisham Ramez, the governor of the Central Bank, told Reuters on Tuesday.

Foreign investors who were net buyers in the first half of the session closed as net sellers to the tune of LE3 million and Arab investors were net sellers to the tune of LE15.8 million.