Egypt stocks Up 1.5% just before monday close

Egypt's major stocks are starting the year up 1.5% at 3,677 points, an hour before the close of Monday''s session. The country''s stock exchange lost 49.3% of its value in 2011, sparked by January''s uprising, months of political uncertainty and worldwide financial turmoil. Of the day''s 138 listed stocks, over 100 are gaining value and around a dozen have declined. Egypt''s largest listed stock, Orascom Construction Industries, is up some 2.9%. Meanwhile Egypt is planning to cut energy subsidies for heavy industries. Steel, cement and ceramics makers will pay a third more for gas and electricity as part of a government plan to shave LE20 billion from the country''s budget deficit. Egypt''s government will hike the prices for natural gas and electricity paid by heavy industries by 33 per cent to narrow its growing budget deficit, the country''s finance minister said this weekend. Speaking to Al-Ahram newspaper, Momtaz El-Said said higher rates will be applied in January to steel, cement and ceramics industries in a move to shave LE20 billion from Egypt''s deficit. Last week, the governor of Egypt''s central bank was quoted by Al-Ahram as saying the deficit for the 2011-12 financial year which began in July could be as high as LE182 billion, significantly above the LE134 billion it forecast in June. Energy subsidies represent about 20 per cent of total government spending. Economists say slashing them is one of the few realistic options Egypt has to cut its deficit. El-Said told Al-Ahram that changes in subsidies would be implemented in a way that avoided hurting lower income families. "The government will take care that the increases do not affect domestic fertiliser prices," he said. Subsidies on gasoline and other petroleum products will remain untouched, and no new taxes will be introduced, he added. Most of Egypt''s fuel subsidies are for gasoline and butane cooking gas.(MORE) MD