Arab Today, arab today egypt’s credit risk rises to highest in years
Last Updated : GMT 00:34:22
Arab Today, arab today
Arab Today, arab today

Egypt’s credit risk rises to highest in years

Arab Today, arab today

Arab Today, arab today Egypt’s credit risk rises to highest in years

Cairo - Arabstoday

Egypt’s dollar bonds tumbled and the nation’s default risk surged to the highest in more than three years after election results were delayed and the military moved to consolidate power. The yield on the country’s 5.75 percent bonds jumped 23 basis points, or 0.23 of a percentage point, to 7.3 percent, the highest since February, at 3 p.m. in Cairo, data compiled by Bloomberg show. Five-year credit default swaps advanced 27 basis points to 706, the highest level since December 2008, according to data provider CMA. The pound fell to the lowest level in more than seven years, and the benchmark stock index slumped to the lowest close in almost five months. More than a year after an uprising deposed Hosni Mubarak, the military is “looking as strong as ever, while Egypt has no parliament, no constitution, no president and a lot of its citizens are losing hope,” Teymour El-Derini, Cairo-based director of Middle East and North Africa equity sales trading at Naeem Brokerage, wrote in an email. “The picture is looking as blurry as ever. It’s not the time to think outside the box but actually to wait and see how things will turn out.” The election commission decided to postpone naming the next president, initially slated for Thursday, because it needs more time to review voting fraud allegations submitted by Muslim Brotherhood candidate Mohammad Mursi and Ahmad Shafiq, Mubarak’s last premier. The delay follows a move by the military to reclaim legislative powers after a court ruling effectively dissolved parliament, setting up a confrontation between Islamists and the Supreme Council of the Armed Forces. Election results may be announced on June 23 or 24, the commission’s Secretary-General Hatem Bagato was cited as saying by the state-run Al-Ahram Gate website. The government paid 15.492 percent to sell six-month treasury bills Thursday, the highest since Bloomberg started tracking the data in 2006. That’s a 13 basis-point jump from the average yield at last week’s sale. The one-year yield rose four basis points to a 15.965 percent, according to central bank data on Bloomberg. The government fell 21 percent short of meeting its 5 billion pound ($825 million) target. The pound, subject to managed float, weakened as much as 0.1 percent to 6.0594 a dollar, the lowest level on a closing basis since December 2004. “There is total uncertainty regarding what will happen after the election,” said Moustafa Assal, managing director of Bondlink Advisory, a Cairo-based financial advisory firm that mostly trades government securities. Investors are selling the country’s dollar bonds and will decide after the election result “whether to buy again or not. Even a 7 percent yield is not enough to make them keep the paper,” he said. The benchmark EGX 30 Index of stocks lost 1.9 percent to 4,031.6 at the close in Cairo, the lowest level since Jan. 23. The measure has tumbled 8.8 percent this week, the biggest such drop since March 2011. Commercial International Bank Egypt SAE, the country’s biggest lender also known as CIB, tumbled 3.8 percent to 21.58 pounds. Palm Hills Developments SAE, a luxury property developer, declined 2.1 percent to 1.43 pounds, the lowest since Feb. 7. Egypt’s interim military rulers have also granted themselves immunity from civilian oversight over military affairs and the power to choose who writes the new constitution. The declaration came after polls closed in the first presidential election following the ousting of Mubarak last year. The generals have pledged to transfer power to an elected president by the end of the month. The developments threaten further delays to concluding a $3.2 billion loan agreement from the International Monetary Fund. The government needs this money to meet about $11 billion of financing requirements over 18 months, Finance Minister Momtaz al-Saieed said in April. The cost of insuring government debt advanced for a sixth day. From TheDailyStar

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt’s credit risk rises to highest in years Arab Today, arab today egypt’s credit risk rises to highest in years

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:26 2017 Sunday ,26 February

Copper recovers lost ground

GMT 15:53 2017 Saturday ,25 February

Bahrain Bourse daily trading report

GMT 14:28 2017 Saturday ,25 February

Gold hits 3.5-month high

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market

GMT 10:17 2017 Friday ,24 February

Dow stands out as global stocks tread water
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday