WASHINGTON: The International Monetary Fund on Wednesday approved the third installment of a $12 billion, three-year loan for Egypt, bringing the total released to date to just over $6 billion.
The IMF board approved the latest $2 billion disbursement under the deal signed in November 2016, after a fund team last month praised Cairo’s progress on “bold” economic reforms.
In order to obtain IMF approval for the loan, the country has implemented a set of drastic reforms, adopting a value-added tax, cutting energy subsidies and floating its pound.
Since the 2011 revolt toppled former president Hosni Mubarak, the economy of the Arab world’s most populous country has received multiple shocks caused by political instability and security issues.
The IMF said Egypt’s economy is expected to grow 4.2 percent this year, well above initial estimates, while the inflation rate, which exceeded 33 percent in August, is declining and is expected to fall to 13 percent by the end of 2018.
IMF approves $2 bn loan installment for Egypt
IMF approves $2 bn loan installment for Egypt
Saudi stocks rise above 11,000 as energy shares lead gains
RIYADH: Saudi Exchange’s benchmark Tadawul All Share Index climbed above 11,000 on Sunday, led by energy and materials stocks despite geopolitical uncertainty from ongoing tensions between US-Israel and Iran across the region.
As of 12:30 p.m. Saudi time, the benchmark index had advanced 224.80 points, or 2.09 percent, to 11,001.12. The MSCI Tadawul Index rose 26.96 points, or 1.84 percent, to 1,488.86, while the Kingdom’s parallel market, Nomu, slipped 0.05 percent to 22,485.78.
The gains came as Gulf markets reacted to heightened tensions between the US-Israel alliance and Iran, prompting investors to shift toward sectors more resilient to higher oil prices and supply disruptions.
Saudi Aramco was among the strongest performers, with its share price rising 4.56 percent to SR27.06 as of 12:30 p.m. Saudi time.
Speaking to Arab News, Tony Hallside, CEO of STP Partners, said: “Energy producers and oilfield services typically outperform on higher crude, while the pain concentrates in airlines, shipping, petrochemicals, and any sector with high fuel or logistics intensity.”
Century Financial chief investment officer Vijay Valecha told Arab News that energy companies such as Saudi Aramco could see their share prices rise under current market conditions.
“At the sector level, energy and petrochemical companies are likely to remain relatively resilient due to stronger pricing. In contrast, sectors such as real estate, consumer discretionary, banking, and capital markets would likely see short-term volatility and profit-taking as investors adopt a more cautious stance,” said Valecha.
He added that elevated energy prices could also increase global inflationary pressures and create uncertainty in supply chains, potentially weighing on broader economic activity.
Stock exchanges across the Gulf Cooperation Council also showed signs of recovery on March 6, with the Bahrain Bourse edging up 0.24 percent and the Muscat Stock Exchange gaining 1.44 percent.
The Qatar Stock Exchange, however, declined 0.15 percent.
UAE equities were closed on Sunday due to an official holiday.
On March 6, the Dubai Financial Market index fell for a fifth straight session, down 3.2 percent, or 197.49 points, to 5,917.22. It declined 9.01 percent for the week.
The Abu Dhabi Securities Exchange general index fell for a seventh consecutive session, dropping 1.4 percent, or 141.49 points, to 9,903.36 on March 6.
“UAE equities ended the week lower as the widening conflict involving the US, Israel, and Iran continued to weigh heavily on risk sentiment. Dubai and Abu Dhabi stocks slid further upon reopening on Wednesday, pressured by regional tensions after the two-day break,” Valecha said in a separate statement.
He added: “Banking and property stocks have been the largest drags as investors reassessed and questioned whether the market had priced in too much resilience. The shift in perception followed missile and drone attacks on Dubai over the weekend, which undermined the idea that the city remained insulated from global tensions.”
