Egypt stocks rally on Monday after Arabtec announcement

Ahram Online, Monday 10 Mar 2014

EGX30 up 0.45% after LE280 billion housing project in cooperation with UAE giant Arabtec unveiled

Egypt stocks
Main index up 0.45% on Monday as Arabtec announces LE280 million investment in Egypt(Photo: AP)

Egyptian stocks rallied slightly after a negative start on Monday’s session, buoyed by the announcement of a LE280 billion investment from the United Arab Emirates on Sunday.

The benchmark EGX30 index, which started the trading week on Sunday down by 0.12 percent, rose 0.45 percent on Monday to close at 7,976 points after the UAE’s Arabtec announced it would cooperate with the Egyptian army to build one million low-income housing units across Egypt.

The mega-project, which will be worth LE280 billion, will cover 160 million square metres in several governorates, with the majority concentrated in Cairo.

Egyptian investors were net buyers for LE4.2 million, as were non-Arab foreign investors for the same net amount, while investors from the Gulf were net sellers to the tune of LE8.4 million.

The real estate sector was ascending, with Palm Hills Development Company gaining 0.59 percent to trade at LE3.42, Six of October for Development and Investment Company up 1.03 percent to LE24.43, and TMG Holding up 0.13 percent to lose at LE2.29 per share.

Orascom Telecom Media and Technology Holding (OTMT) rose 0.44 percent to LE1.41 a share, while Global Telecom gained 0.43 percent to trade at LE4.72 a share. Telecom Egypt climbed 1.77 percent to LE15.56 a share.

Ezz Steel, whose founder and former chair Ahmed Ezz could be released on a bail of LE2.2 million according to a court ruling on Monday, saw its share price rise 1.70 percent to LE17.92.

The steel tycoon received cumulative sentences of 60 years in prison on corruption charges in the wake of Egypt's 2011 revolution, which have since then all been successfully appealed. He is facing a number of retrials.

The broader EGX70 index also rose and was up 0.93 percent at the session, which witnessed a total daily turnover of LE813.8 million.

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