Gulf markets, Telecom Egypt help Egypt stocks up

CAIRO - Egyptian shares rose on Thursday, driven by recoveries in Gulf markets and by a large transaction in Telecom Egypt, brokers said.

By (Reuters)

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Published: Thu 1 Jun 2006, 10:29 PM

Last updated: Sat 4 Apr 2015, 3:16 PM

About eight million shares in Telecom Egypt changed hands at 14.11 Egyptian pounds ($2.45), pulling the share up from Wednesday’s close at 13.63. The shares last traded at 15.10 pounds, up 10.8 per cent on the day.

Telecom Egypt has become one symbol of the Egyptian market’s changing fortunes over the past six months. Floated at 14.80 pounds in December, it rose to 30.01 on its first day and then fell back to as low as 11.10 on May 25.

Mohamed Radwan of Delta Securities said the transaction on Thursday, between two parties in the Gulf, stimulated interest in the company, making it the most active of the day by volume.

But Mohamed Kotb of Gezira Asset Management said there was a resistance level at around the current price because many people who bought in the December IPO were willing to sell the shares at a small margin above the flotation price.

Regional mobile operator Orascom Telecom announced a dividend of 3.75 pounds, payable on shares held on June 11. But the shares gained only 2.99 pounds, last trading 1.1 per cent up at 271.00 pounds.

Investment bank EFG-Hermes, the most active by turnover and a measure of retail investor sentiment, rose 1.1 per cent to last trade at 33.91 pounds.

The benchmark Hermes index, which dipped nearly 15 per cent last week, ended 2.1 per cent higher at 48,363.74 points.

The Case 30 index gained 2.0 per cent to end at 5,468.40 points and the broader CIBC index rose 1.6 per cent to 202.37 points.

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