Last Update 11:37
Tuesday, 19 November 2019

Qatar's eye on Egypt banks drives up shares 1.7pct

Egypt's main index starts week on a high recording 5,425 points, as banking and property sector enjoy significant gains

Ahram Online, Sunday 2 Sep 2012
Peaceful voting process triggers a buying spree in Egypt. (Photo: Reuters)
Views: 1328
Views: 1328

Egypt’s stocks rose at the close of the week’s starting session, unusually bolstered by the banking sector as its shares recorded high gains.

The main index EGX30 climbed by 1.7 per cent recording 5,425 points despite both Egyptian and foreign investors net-selling at LE8.2 million and LE22.3 million respectively.

“For Egyptians it’s not more than profit-taking, while foreigners are still not sure about the country’s economic situation,” said market expert Mostafa Badra.

Badra explained that the Egyptian government is drying up local liquidity through borrowing from commercial banks, driving interest rates to un-sustainable levels. In August the government issued euro dominated T-bills for the first time, selling €513 million (some $642 million) worth of bills at an average weighted yield of 3.2 per cent.

Arabs were the only net-buyer in today's session with LE30.5 million, which pushed up several shares in the banking sector and real estate.

The only heavyweight share to undergo profit-taking on Sunday was Orascom Telecom (OT) which dipped 0.5 per cent.

Commercial International Bank (CIB) and National Société GénéraleBank (NSGB) led the gainers up 5 per cent and 10 per cent respectively.

On Sunday, Qatar National Bank (QNB), the state lender seeking to boost its regional presence through acquisitions, hired J.P. Morgan Chase to advise them on a planned buy of Société Générale's Egyptian arm, three sources said.

SocGen is in early talks with QNB to sell its 77.2 per cent stake in NSGB  - the Egyptian lender which has a market value of around $2.3 billion - as the French bank seeks to shore up its capital through divestments.

Property share Talaat Mostafa Group (TMG), Palm Hills Development (PHD) and Six of October Development and Investment (SODIC) all saw significant rises of 1.5 per cent, 3.5 per cent and 4.7 per cent respectively.

The blue-chip Orascom Construction Industries (OCI) gained 0.2 per cent.

Of listed 178 stocks, 125 rose and 46 declined in a session that saw a total daily turnover of LE619 million.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

Hassan Hussein
03-09-2012 08:34am
Buying NSGB article in Ahram on line
Comment's Title

© 2010 Ahram Online.