Egypt's stocks rally on El-Sisi speech

Ahram Online, Tuesday 4 Mar 2014

Benchmark index EGX30 up 0.95 percent after army chief says he will run for president; almost 75 percent of stocks traded on Tuesday were gainers

Egyptian stock market
File Photo: A view from the Egyptian stock market in Cairo (Photo: Reuters)

Egypt's stock market rose on Tuesday as Egyptian army chief Field Marshal Abdel-Fattah El-Sisi implied in a speech that he would run for president as soon as formal procedures were finalised.

Speaking at a graduation ceremony for cadets at the Egyptian Military Academy in Cairo, El-Sisi said that he couldn't "turn his back on calls by the majority of Egyptians for him to run for president," according to state-run MENA.

A new law governing Egypt's upcoming presidential elections has been revised and was sent on Monday to interim President Adly Mansour for a final review. After the law is issued, the presidential race will officially start.

Egypt's benchmark index EGX30 increased 0.95 percent to register 7,933 points.

Listed stock turnover reached LE900 million ($129 million).

"Today's market rise was a reaction to El-Sisi's speech but also part of the bouncing-back in world markets," Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

On Monday, Egypt's market was one of many decliners due to concerns about Russia's recent military advance into Ukraine and possible sanctions by Western governments.

Almost three quarters of the stocks traded on Tuesday were gainers.

Market bellwether Commercial International Bank (CIB) inched up 0.81 percent to record LE36.27 ($5.20) per share.

Orascam Construction Industries (OCI) increased by 2.65 percent to sit at LE359 ($51.60) per share.

OCI was acquitted on Tuesday of charges of tax evasion and resumed trading in the stock exchange.

Orascom Development Holding (ODH) also gained 1.74 percent following news of its acquisition of 25 to 35 percent of German tourism company FTI. ODH's last price was LE7 ($1.01) per share.

Only five shares in EGX30 were in the red on Tuesday.

Global Telecom Holding inched down 0.21 percent, registering LE4.7 ($0.68) per share.

Eastern Tobacco dropped 0.42 percent to sit at LE162.01 ($23.3) per share.


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