Egypt stocks round out the week with modest gains (Photo: Reuters)
Egypt’s major stocks ended the week marginally in the green amid news that a long-awaited deal involving one of the country's leading telecoms firms may soon come to fruition.
The benchmark EGX30 edging up 0.22 per cent to close Thursday at 5,145 points amid speculation that Orascom Telecom (OT) may soon sell its majority stake in Algerian mobile unit Djezzy to the country's government.
Early on Thursday the Bourse suspended trade in OT shares as it waited for further news on the deal. The telecom firm returned to the market after it confirmed that discussions between its Russian owner, Vimpelom, and Algerian government are continuing. OT stocks finished the day up 4.13 per cent.
"The main index was drive up by active heavyweight shares like Orascom Telecom and Orascom Construction Industries," market expert Mostafa Badra told Ahram Online.
Both stocks, among the market's largest by capitalisation, finished the session up 1 per cent.
From Thursday’s 180 listed stocks, only 29 gained in value and 135 saw losses. Total turnover was LE329.4 million, around a third of the average until little over a week ago.
The broader EGX70 and EGX100, reflecting the focus on select higher-cap stocks, saw losses; closing down 1.1 per cent and 0.6 per cent respectively.
Interest in Orascom Telecom prompted interest in other shares in the sector.
Orascom Telecom and Media Technology, the company comprising Egyptian assets of OT which remains under mainly Egyptian ownership, saw the day's highest turnover -- some LE43.4 million. It failed to move in either direction.
"Telecommunication was the most attractive sector for investors over the last week, even Telecom Egypt follow the gainers to climb 0.2 per cent," Badra said. "Investors are longing for any news about the OT deal."
Other blue chips did less well. Shares in the Commercial International Bank slipped 0.4 per cent tracking, while Palm Hills, Talaat Mostafa Group and Ezz Steel declined 1.5, 1.3 and 1.2 per cent respectively.
Non-Egyptian Arabs were the day's only net-buyers, scooping up LE9.2 million in stock. Locals and other foreigners, were marginal net-sellers, to the tunes of LE4 million and LE5.3 million.
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