Cairo’s bourse rallies for a third day since Jan. 29, 2013 low, with foreign investors viewing Egypt’s domestic strife as an opportunity to pick up shares at lower prices.
The benchmark climbs 1.3 percent to 5,682 points.
At least one protester was shot dead and dozens wounded on Friday when riot police clashed with demonstrators demanding the overthrow of President Mohamed Mursi. Eight days of protests have killed nearly 60 people.
A video of one demonstrator stripped naked, dragged across the ground and beaten with truncheons by helmeted riot police has fired Egyptians to a new level of outrage.
Egyptians are net sellers on the bourse, while other Arab investors are net buyers, data on the Cairo’s exchange website shows.
“There is a famous saying - buy when there is blood in the streets – that’s exactly what we are seeing in Egypt,” says Sebastien Henin, portfolio manager at The National Investor.
“If you are a risk taker, it makes sense to have a small exposure to Egypt these days. Even if the situation is becoming shaky from political point of view, a lot of investors are betting that things will improve.”
Commercial Bank International rises 1.4 percent, Orascom Construction Industries gains 0.8 percent and Talaat Mostafa Group adds 2.1 percent.