Traders work at the Egyptian Stock Exchange in Cairo (Photo: Reuters)
Egypt's stocks rallied on Monday as investors' confidence in the economy was restored following the inauguration of President Abdel-Fattah El-Sisi, analysts say.
The benchmark index EGX 30 increased 1.12 percent to 8,593 points while the broader index EGX70 rose 0.82 percent.
Although daily stock turnover exceeded LE1 billion, the figure is still lower than the previous session's level of LE1.2 billion.
"Stocks were up mainly on expectations of political stability following the inauguration of the new president," Eissa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.
The main index's climb was slowed down by the end of the session due to Egyptians' selling activity as they sought profit taking, added Fathy.
Egyptian investors, comprising almost 85 percent of trading activity, were net sellers to the tune of LE31 million, while Arab and non-Arab foreigners were net buyers.
Foreign investors are usually interested in buying specific shares such as Commercial International Bank (CIB), Egyptian Financial Group-Hermes (EFG-Hermes) and Global Telecom Holding (GTH).
Market bellwether CIB gained 1.01 percent to reach LE36.7 per share and GTH inched down 0.18 percent to LE5.53 per share.
Egypt's biggest investment fund, EFG-Hermes, increased 5.04 percent to LE15.28 per share.
The Egyptian Financial Supervisory Authority is currently studying an offer made by Beltone Financial and New Egypt Investment Fund B.V. to acquire a 20-percent stake in Hermes in a deal worth LE1.8 billion ($256 million).
In the real estate sector, Six of October for Development and Investments Company (SODIC) inched up 0.4 percent to LE29.9 per share – its highest share price in a year, said Fathy.
SODIC announced its first quarter results on Monday showing a net profit of LE19.5 million for the three months ending on 31 March.
El-Swedy Electric – a wires and cables producer – gained 1.04 percent to LE33.2 per share despite announcing a net loss of more than LE19 million on Monday.
An expected boom in the real estate sector and complementary industries raises expectations for El-Swedy's future financial performance, Fathy said.
In March, Arabtec Holding agreed with the Egyptian army to build 1 million houses in a project worth LE280 billion.
Palm Hills saw its share price inch down 0.44 percent to LE4.42 per share. The real estate developer announced earlier on Monday the immediate appointment of Tarek Abdel-Rahman to the position of co-CEO along with Mohamed Sultan.