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Last Trade - 04/04/18

Sector
Financials
Size
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Market Cap £14.6m
Enterprise Value £213.6m
Revenue £235.4m
Position in Universe th / 1824

MIDEAST STOCKS-Egypt extends rally into third day; banks main drag in Saudi

Wed 16th March, 2016 10:01am
DUBAI, March 16 (Reuters) - Egyptian stocks rose in early 
trade on Wednesday, heading for a third straight session of 
gains after the central bank devalued the currency. Saudi Arabia 
edged down, dampened by banks after Moody's cut its outlook for 
the sector.  
    Cairo's main index  .EGX30  gained 1.4 percent; it has 
climbed over 10 percent in the past two days on hopes that the 
devaluation will draw capital back to the country. 
    "There is substantial foreign money flowing in from abroad," 
said a fund manager at a major Cairo financial firm. "The 
devaluation immediately made it 15 percent cheaper for foregners 
to invest." 
    The real estate sector continued to rally for a third 
session with Talaat Mostafa Group  TMGH.CA  and Palm Hills 
 PHDC.CA  adding 5.3 and 2.4 percent respectively. Investors are 
allocating funds into the segment as they expect locals will 
purchase property as a store of value against an expected spike 
in inflation after the currency dropped. 
    But the central bank is expected to raise interest rates on 
Thursday, a Reuters poll showed, in an attempt to defend the 
Egyptian pound from a further drop. The fund manager said the 
pound was likely to stay stable while it absorbed the inflows of 
funds, and that while further devaluation was possible, it was 
unlikely to happen before July.  ID:nL5N16N5A4  
    The banking sector was the main drag on Riyadh's index 
 .TASI , which edged down 0.1 percent.  
    Moody's revised its outlook for Saudi Arabia's banking 
system to negative from stable, saying persistently low oil 
prices and lower government spending would weigh on the sector 
as credit risk started to rise. The agency sees average oil 
prices at $33 a barrel in 2016 and around $38 in 2017.  
    National Commercial Bank  1180.SE  and Banque Saudi Fransi 
 1050.SE  each fell 1.5 percent.  
    The Moody's action was not surprising after the agency put 
the Saudi sovereign on review for a possible downgrade earlier 
this month, but it underlined continuing risks for the Gulf. 
    "Banks will continue to remain exposed to event risk 
stemming from high single party exposures," Moody's said. 
    The Saudi petrochemical sector was resilient, adding 0.1 
percent with heavyweight Saudi Basic Industries  2010.SE  up 0.7 
percent. 
 
 (Reporting by Celine Aswad; Editing by Andrew Torchia) 
 ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters 
Messaging: andrew.torchia.thomsonreuters.com@reuters.net)) 
 
Keywords: MIDEAST STOCKS/SAUDI

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