Egypt stocks hit 5-month high on expected Arab investment

Ahram Online, Sunday 4 Aug 2013

Despite ongoing political turmoil, Egyptian stocks surged in Sunday trading on news that six Arab Gulf companies will soon join the Cairo bourse

Egypt stocks hits 5-month high due to expected Arab investments
File photo, an Egyptian broker gestures during a session at the Egyptian stock market in Cairo, Egypt (Photo: AP)

Egypt’s stocks hit a near five-month high Sunday amid optimism prompted by investors, particularly after the bourse’s head made statements Thursday revealing that six Arab Gulf companies from Kuwait and the United Arab Emirates are expected to be listed in the Egyptian Stock Exchange soon.

The main EGX30 index rose 2.8 percent, recording 5,530 points, spurred by domestic investors as net-buyers with some LE21.8 million.

“The expected Arab investment and the US dollar’s backoff against the Egyptian pound fuels investors, especially Egyptians,” said market expert Mostafa Badra.

Badra told Ahram Online that foreign investors were net-sellers at some LE5.5 million, with some concerned by current protests staged by supporters of ousted Islamist president Mohamed Morsi.

The broader EGX70 index rose 1.3 percent in a session that saw a daily turnover of listed securities registering LE394 million.

Sunday’s trading witnessed Orascom Construction Industries (OCI) being delisted from the Egyptian bourse after being completely acquired by its Dutch parent company OCI NV.

Commercial International Bank — which, on the back of the OCI delisting, became the market’s largest listed company in term of capital — soared 3.3 percent.

The market’s bellwether Orascom Telecom surged by 3.5 percent.

Real estate developers Talaat Mostafa Group and Palm Hills Development rose three percent per each, while Six of October Development and Investment Company rose five percent.

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