Traders work at the Egyptian stock exchange in Cairo (Photo: Reuters
Egypt’s stocks rose almost across the board in a continuation of the last session’s upward trend and as the private placement for Arabian Cement ended being over-subscribed 11.3 times.
The benchmark EGX30 index increased 1.92 percent to reach 8466 points Wednesday while the broader EGX70 index inched up 0.81 percent.
Listed stock turnover exceeded LE1 billion.
“The success of the Arabian Cement private placement ahead of its public offering encourages investors to buy, especially following the last session’s rise,” Ashraf Abdel Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online.
Arabian Cement is the first company to list in the Egyptian Stock Exchange since the popular uprising in 2011 toppled former president Hosni Mubarak.
The company’s private placement ended 13 May with bids reaching 11.3 times the actual offering. Its stock price will start at LE9 per share next week.
EFG-Hermes and CI Capital, a subsidiary of Commercial International Bank (CIB), are the book runners for the Arabian Cement initial public offering (IPO).
EFG-Hermes' share price increased by 2.25 percent to reach LE13.61 per share while CIB managed to rise 2.22 percent to reach LE37.88 per share.
Real estate sector stocks continue to drive the main index up, said Abdel Aziz.
Palm Hills Development was able to score the highest turnover in the main index, achieving almost LE95 million. The company’s share price rose 2.78 percent to end at LE4.49 per share.
Talaat Mustafa Group was up 3.84 percent to LE9.34 per share while Six of October Development and Investment Company (SODIC) was up 3.17 percent to reach LE27.2 per share.
Orascom Telecom Media and Technology company was also able to score a high LE78.4 million in turnover. The company’s share price rose 2.34 percent to end LE1.3 per share.
Global Telecom Holding was up 0.75 percent to LE5.4 per share while Telecom Egypt was one of only three decliners in the main index, dropping 0.21 percent to LE14.24 per share.