CAIRO, Dec 1 (Reuters) - Net transactions by non-Arab foreign investors on Egypt’s stock exchange surged to 3.759 billion Egyptian pounds ($213.58 million) in November compared with just 545 million pounds in the first 10 months of the year, the exchange said.
The spike in foreign investment came after the central bank surprised markets on Nov. 3 and floated the pound currency in an effort to attract foreign capital and curb an out-of-control foreign currency black market.
The Cairo stock exchange said in a monthly report released late on Wednesday that its benchmark index jumped 36.6 percent to 11,453 in November, its highest since 2008.
Egypt’s economy has struggled after nearly six years of political turmoil drove away tourists and foreign investors, key sources of hard currency for the import-dependant country.
The floating of the pound and its subsequent weakening has lowered Egyptian stock prices, making them attractive for foreigners.
Egypt hopes the float will attract foreign investors, lead to an increase in exports, and allow companies to get dollars from banks at market prices, thus restoring them to full productivity after a slow period due to a foreign currency shortage.
$1 = 17.6000 Egyptian pounds Reporting by Ehab Farouk; Writing by Ahmed Aboulenein; Editing by Subhranshu Sahu