EGX30 resumes rise to hit 11-month high

Ahram Online, Wednesday 9 Oct 2013

Stocks rise but turnover remains weak as investors await end of Hajj to change positions

Traders work at Egypt's Stock Exchange in Cairo (Photo: Reuters)

Positive sentiment drove Egypt's benchmark index to resume its rise on Wednesday, reaching 5,802 points, its highest level in 11 months.

The EGX30 rose 0.83 percent, bringing year-to-date gains to 6.2 percent.

Turnover of listed stocks remained fairly weak, at LE349 million, due to the approaching Islamic Hajj season, before the end of which Egyptian and Arab investors are weary of changing their positions, Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

But overall optimism regarding the country's future and a growing imperviousness to bouts of violence resulting from political tensions are preserving the market's upward momentum, explains Fathy.

Non-Arab foreigners accounted for a relatively high 29 percent of trading, and were the net-buyers for the session, for the value of LE86.3 million.

Fathy attributed this development to the swap of Orascom Construction Industries shares to Dutch parent company OCI NV shares, as part of a complete takeover bid by the latter.

In September, Netherlands-based fertiliser and construction company OCI NV had extended a tender offer to allow remaining OCI shareholders to convert their shares into OCI NV or elect to receive a cash alternative of LE255 per share.

The company had previously acquired over 97 percent of OCI's shares on the EGX in a tender completed on 28 July.

Market bellwether Commercial International Bank rose 0.39 percent, while investment bank Egyptian Financial Group-Hermes Holding Company, in the red on Tuesday after long-time CEO Hassan Heikal announced his resignation, gained 0.41 percent.

In the real estate sector, Palm Hills Development Company rose 0.42 percent, TMG Holding 1.17 percent and Six of October Development & Investment (SODIC) 1.39 percent.

The broader EGX70 gained 0.53 percent.

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