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Egypt's stocks up on El-Sisi's iron-fisted promises

EGX30 and EGX70 up 0.78 and 0.87 percent, respectively, as investors are upbeat about Egypt's presidential race favouring the former military strongman

Ahram Online, Tuesday 6 May 2014
Traders work at the Egyptian stock exchange
Traders work at the Egyptian stock exchange in Cairo (Photo: Reuters)
Views: 1702
Views: 1702

Egypt's stocks swung into the green on Tuesday as investors responded positively to firm announcements made by presidential frontrunner Abdel-Fattah El-Sisi in his first televised interview on Monday night.

The main EGX30 index rose 0.78 percent to 8,371 points, while the broader EGX70 climbed 0.87 percent as daily turnover reached a relatively high LE915.5 million.

"El-Sisi's statements reassured investors, who expect him to win [the election], that the country will be in firm hands come the end of the month," Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

The military strongman told talk-show host and political pundit Ibrahim Eissa in Monday night's interview that he would "finish off" the Muslim Brotherhood if elected.

The Egyptian military and police have been engaged in a "war on terrorism" against supporters of deposed Islamist president Mohamed Morsi since last summer, with frequent bombings targeting them in Cairo and across Egypt.

Non-Arab foreigners were the session's net-buyers to the tune of LE71.6 million, while Egyptian and Arab investors were net-sellers.

Institutions accounted for over 40 percent of market activity, acting mostly as net-buyers, "building positions to take advantage of the expected rise after El-Sisi's victory," said Fathy.

In the main index, real estate giant Palm Halls Development was the most traded stock with a turnover of LE205.7 million, rising 1.91 percent to trade at LE4.26 a share.

The company said on Monday that it was in talks with the Arab African Bank over a LE2.4 billion ($342.5 million) loan destined to finance projects and refinance loans.

The rest of the real estate sector was in the green, with Six of October Development and Investment (SODIC) up 2.88 percent to trade at LE26.75, and TMG Holding up 0.90 percent to trade at LE8.94 a share.

Orascom Telecom Media and Technology Holding was the second most-traded stock, with a turnover LE103.5 million, climbing 1.54 percent to trade at LE1.32 a share.

Global Telecom Holding rose 1.12 percent to LE5.40 a share, and state-owned fixed-line operator Telecom Egypt (TE) inched up 0.20 percent to LE14.82 a share.

Market bellwether Commercial International Bank (CIB) rose 0.46 percent to LE37.38 a share.

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