Egypt shares rise over Gulf interest in EFG-Hermes

CAIRO - Egyptian shares rose on Monday, boosted by an offer by a Gulf-based firm to buy a 25 percent stake in investment bank EFG-Hermes through a capital increase, traders said.

By (Reuters)

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Published: Mon 24 Jul 2006, 11:04 PM

Last updated: Sat 4 Apr 2015, 1:07 PM

They said that traders had been uneasy at the start of a long weekend marking the 54th anniversary of the overthrow of Egypt’s monarchy, because attacks targetting tourists in Sinai have previously occurred on national holidays.

But sentiment turned upward after the weekend passed with no violence. Sunday was also the first anniversary of a bombing in the Red Sea resort of Sharm el-Sheikh that killed 67 people.

“There had been a lot of cautiousness for fear of any terror attack that might happen,” said Mohammed Radwan of Delta Securities. “News of the Israeli-Lebanon crisis is already discounted in the market.”

The benchmark Hermes index ended 2.9 percent higher at 45,412.38 points, while the broader CIBC index gained 1.7 percent to close at 199.94 points. The widely watched CASE 30 index rose 3.8 percent to 5,132.16 points.

Shares in EFG-Hermes, the most heavily traded stock by turnover, jumped 23.8 percent to end at 34.50 pounds. EFG-Hermes said that Abraaj Capital Limited of the United Arab Emirates had offered to acquire a 25 percent stake in the firm through a capital increase.

It said Abraaj had offered to buy more than 97 million new shares at 30 pounds per share in a deal valued at roughly 2.9 billion pounds. It is subject to approval by EFG-Hermes’s board.

Shares in Ezz Steel Rebars and Arabia Cotton Ginning, both popular among retail investors, also rose. Ezz Steel ended the day 11.3 percent higher at 52.05 pounds, while Arab Cotton Ginnings was up 15.8 percent at 11.85 pounds.



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