Egypt's market was on the rise on Tuesday as foreign and regional institutions are optimistic about the country's economy and a highly anticipated investors conference in March, says an analyst.
Benchmark index, EGX30, gained 1.26 percent to register 9,954 points, near the resistance level of 10,000 points.
"Institutions, international and regional, are optimistic about the preparations for the March conference, seen most recently in the government's visit to Kuwait," Mohamed Radwan, head of equities at Pharos Holding, told Ahram Online.
Egypt’s prime minister, Ibrahim Mahlab, was in Kuwait on Monday accompanied by the minister of investments, Ashraf Salman, and the central bank governor, Hisham Ramez. During the visit, Kuwaiti Kharafi group announced its intention to build a Mitsubishi assembly factory in the impoverished Upper Egypt governorate Qena and to invest in the yet to be established administrative capital, which aims at moving the country's ministries and govermental building outside Cairo..
Egypt is holding an Economic Development Conference in March to reinvigorate foreign investment in an economy that continues to suffer from four years of turmoil.
Institutions which comprised almost 96 percent of all trades were net buyers to the tune of LE50 million while individuals were net sellers. Arab and other foreign investors were net buyers to the tune of LE10.9 million, while Egyptians were net sellers.
Daily stock turnover exceeded the LE1 billion benchmark which was explained by Radwan as the result of demand on a greater number of stocks rather than just the blue chips.
“Investors were buying stocks in the sectors they believe are booming in the economy, such as constructions,” added Radwan.
Arabian Cement company and Ezz steel were the biggest gainers in the session, rising 4.12 percent to LE16.75 per share and 3.67 percent to LE15.99 per share.
The real estate sector followed with Madinet Nasr Housing up 3.02 percent to LE35.7 per share and blue chip Talaat Moustafa Group (TMG) gaining 3.01 percent to LE11.95 per share.
Market bellwether, Commercial International Bank (CIB), increased 0.92 percent to LE56.48 per share.
Broader index, EGX70, grew 1.95 percent.