Egyptian Shares End Higher, Gain EGP7bn

Egypt’s stock market ended higher on Tuesday with gains totalling around 7 billion Egyptian pounds powered by local investors’ buying appetite. Accordingly, the main stock index, EGX30 jumped to approach the level of 8270 points on Tuesday.

The Egyptian Exchange (EGX) had halted trading activities on Sunday, April 20 and Monday, April 21, 2014 for the Easter holidays.

Meanwhile, the EGX indices were wavering in green notes during the closing session on Tuesday.


Egypt’s benchmark index EGX30 closed 2.04 per cent higher to 8269.02 pts; while EGX20 finished 2.09 per cent up to 9961.29 pts.     
In addition, the mid- and small-cap index, the EGX70 climbed by 1.37 per cent to end at 614.73 pts. The price index EGX100 inched up by 1.15 per cent to conclude at 1074.35 pts.  
Furthermore, the market capitalization recorded EGP 484.542 billion on Tuesday.

Turnovers below EGP1 bln
Through the closing session of Tuesday, the trading volume has reached 301.233 million securities, with turnovers worth EGP 878.200 million, exchanged through 34.678 thousand transactions.              
Also during the closing session, 182 listed securities have been traded in; 37 declined, 117 advanced; while 28 keeping their previous levels.

Investors’ Activities

Egyptian investors were net buyers capturing on Tuesday 91.49% of the total market, with a net equity of EGP 33.095 million, excluding the deals.

On the other hand, the non-Arab foreign investors and Arab were net sellers seizing 3.74% and 4.77% respectively of the total markets, with a net equity of EGP 8.810 million and EGP 24.284 million respectively, excluding the deals.

Companies’ Activities

At the EGX30, Cairo-based investment bank EFG-Hermes Holding (HRHO.CA) saw its share price decline on Tuesday by 0.62 percent to EGP 12.83.

Market bellwether Commercial International Bank S.A.E. (COMI.CA) went down by 0.64 percent to EGP 37.05.

In the real estate sector, Palm Hills Development Company (PHDC.CA) soared by 2.27 percent to trade at EGP 4.06, Talaat Moustafa Group Holding (TMGH.CA) surged by 1.03 percent to trade at EGP 8.82, in addition the Sixth of October Development and Investment Co S.A.E – SODIC (OCDI.CA) also rose by 0.18 percent to close at EGP 27.08.

Cairo-based Global Telecom Holding (GTH) (GTHE.CA on EGX) (Previously Orascom Telecom Holding S.A.E.) surged the most in more than a year after its parent company VimpelCom Ltd. (VIP:US) agreed to sell a stake in their Algerian business, ending a three-year dispute with the North African nation’s government.

Shares of the mobile-phone company surged 9.89 percent, the most since April 2013, to close at EGP 5.  The Egyptian Exchange restricts daily movements in stocks to 10 percent. The company’s global depositary receipts in London soared 17 percent, the most since March 2012, to $3.82.

Cairo-based Global ended an ownership dispute with the Algerian government after VimpelCom agreed to sell a 51 percent stake in Orascom Telecom Algerie SpA to the Algerian National Investment Fund for $4 billion. The deal averts arbitration proceedings sought by Global after Algeria levied tax claims on Djezzy, as Orascom’s brand is known, and blocked dividend payments to its parent. Under the agreement, Djezzy will pay a $1.86 billion dividend to Global Telecom.

“The deal is positive in the short term because Global managed to unlock asset value after three years of a very unfavorable environment in Algeria,” Ahmed Adel, equity analyst at Cairo-based Naeem Holding, said by phone to Bloomberg. “In the long term, shareholders will benefit from increased dividend payouts.”