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Market report: Egypt's positive outlook drives the market up to an 8-month high

Egypt's Stock exchange continued its advance on the mid-week session and closed up 1.8 per cent

Khaled Barakat , Tuesday 4 Jan 2011
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Egypt’s benchmark index EGX 30 ended today's session in the plus column, inching up 1.8 per cent, to close at 7200 points, hitting an 8-month high.

At the beginning of a new year, investors have a healthy appetite to buy Egyptian stocks, also due to the positive outlook of the Egyptian economy, traders say.

“Orascom Construction Industries (OCI)  succeeded today in achieving the highest level in 26 months to arrive in mid-transactions to 294.5 pounds, thanks to a sustained buying spree on the stock that began late days of 2010”, says Waleed Yousry, head of research at Watheeqa Securities Brokerage.

CI Capital Investment bank today kept the value of OCI at the level 'fair' of LE359, and the target price at LE 306, with a recommendation to buy. This is based on expected regional expansion of the company, in order to exploit opportunities around the world in the sectors of fertilizers and construction.

The CI Capital report expects the rise of prices of nitrogen fertilizers, which will support the company's performance in 2011, especially with the stability of natural gas prices.

Index heavyweights Orascom Construction Industries (OCI) and  EFG-Hermes rose 3.3 per cent and 3 per cent, respectively.

Nationals dominated 84.9 per cent of total trading, while retail investors, who tended to buy, controlled 34.5 per cent of total trading, with LE 479.387 billion as total market capital

For tracking stock movement, General Company For Land Reclamation, Development & Reconstruction was the top mover to the upside, soaring up 9 per cent, to LE 58.3. It was followed by Trans Oceans Tours, which surged up 9 per cent, reaching $ 0.2.

All sectors were turned on a green note today. Financial services excluding banks and construction being the most active, dominating 18 per cent, or over LE 42.5 million.

The EGX70 continued its rise during the mid-week session by 1 per cent, reaching 757 points, with a trading value of LE235.5 million. The EGX70 accounted for 11.9 per cent of the total market capitalization, with a market capital value of LE55.7 billion

 

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