Egypt stocks rally on Tuesday, bolstered by global rebound

Deya Abaza, Tuesday 28 Oct 2014

EGX30 up 1.1% as blue chip telecom and real estate shares see significant gains while US and European markets rally

Egyptian stock exchange
Traders work at the Egyptian stock exchange in Cairo (Photo: Reuters)

Egypt's main index rallied on Tuesday, gaining 1.11 percent to end the session at 8,745 points, bolstered by a rebound of global stocks.

European shares rose on Tuesday, as blue chips such as Novartis and UBS posted better than expected results, while U.S. stocks rose. 

The global context provided support to the Egyptian market, Hassan Kinawy, head of the local institutions desk at HC brokerage, told Ahram Online. Arab investors were the net-buyers for the session, to the tune of LE44.4 million while Egyptian investors were net-sellers for LE30.4 million, and non-Arab foreigners for LE14 million.

Market bellwether Commercial International Bank (CIB) fell 0.75 percent to 46.16 while lower-value blue chips saw gains, as investors shifted their positions after weeks of losses, Hassan Kinawy, head of the local institutions desk at HC brokerage, said Kinawy. 

Total turnover of listed shares reached LE650 million.

Real estate stocks were among the gainers, as Six of October for Development and Investment soared 6.27 percent to LE14.92 after completing a capital increase of LE1 billion.

Property Developer TMG Holding rose 4.03 percent to trade at LE9.82 a share, while Palm Hills Development Company saw its share price climb 2.42 percent to LE3.81.

Orascom Telecom Media and Technology Holding, of which Telecoms tycoon and executive chairman Naguib Sawiris recently became CEO, was the most traded share in the index , seeing its share price rise 2.73 percent.

Global Telecom Holding rose 1.15 percent to LE4.38.

Ezz Steel, the country's largest steel maker, was up 0.44 percent to LE16.1. The company's largest subsidiary, Al Ezz Dekheila Steel, reported a net profit of LE55.6 million on Tuesday in its unaudited financial results for the quarter ending on 30 September 2014, a 94 percent drop from the LE962 million reported in the corresponding quarter of the previous year.

The broader EGX70 index rose 2.4 percent. 

Regional markets were mostly down. as Saudi stocks fell 1.16 percent, and the Kuwaiti index slid by 0.88 percent. Dubai shares fell 1.36 percent, while Abu Dhabi was up 0.49 percent, bucking the trend. 


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