Egypt stocks soar on Davos-based investor optimism

Ahram Online, Wednesday 22 Jan 2014

EGX30 rises 1.3 pct amid strong turnover as foreign investors buy LE37 million worth of shares ahead of World Economic Forum in Davos

stock market
Egyptian traders work on the floor of the stock market in Cairo (Photo: AP)

Egypt’s benchmark EGX30 index soared by 1.3 percent Wednesday to reach 7,179 points as investors rushed towards smaller stocks.

The broader EGX70 index rose 0.64 percent.

Foreigners were the net-buyers of the session, as Arab and non-Arab foreigners purchased a net LE17 million worth of stocks each.

Daily turnover reached LE787.5 million as investors' appetite was driven by optimism regarding Egypt’s prospects at the World Economic Forum in Davos, Switzerland, which opened Wednesday, Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

A high-ranking delegation, headed by Prime Minister Hazem El-Beblawy and including Minister of Finance Ahmed Galal, along with other officials, is expected to make a case for the return of foreign direct investment to Egypt at the prestigious four-day long event attended by representatives of the world’s most powerful economies.

Orascom Telecom Media and Technology Holding (OTMT) saw its share price rise by over 7.5 percent to LE1.14 amidst a turnover equaling LE145 million after it announced that its subsidiary, MENA Cables, had signed an agreement with Telecom Egypt (TE).

The deal will allow the company to use the landline operator’s national infrastructure to complete the MENA Submarine Cable, its first optic submarine cable system spanning Europe, Africa, and Asia, said the company’s release to the Egyptian Stock Exchange.

OTMT has also signed an agreement with TE, acquiring local and international capacity and services, added the release.

Amer Group Holding, among EGX70 shares, witnessed a turnover of LE72.5 million, pushing its share price up 5.7 percent to reach LE0.93 per share at the close of the session.

Market bellwether Commercial International Bank (CIB) also rose LE1.63 percent amid a turnover of LE45 million, to reach LE33.14 per share.

Telecom Egypt, a signatory to the OTMT agreement, climbed 0.9 percent to LE14.64, while Global Telecom Holding rose 0.4 percent to LE5 a share.

In the real estate sector, Palm Hills Development Company gained 2.9 percent to record LE2.84 per share, TMG Holding rose 1.47 percent to LE6.92 per share, while Six of October Development & Investment (SODIC) dropped 1.4 percent to LE22.3 a share.

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