CAIRO: Investor interest in housing stocks helped up small and mid-cap Egyptian shares on Tuesday amid expectations firms in the sector will benefit from increasing land prices, traders said.
The benchmark Hermes index fell because seasonal holidays in western markets meant many foreign institutional investors, who traditionally prefer big-cap stocks,were absent from the market, the traders added.
The benchmark Hermes index fell 155.95 points, or 0.3 percent, to end at 53,891.32 points.The broader CIBC index rose 0.95 points, or 0.4 percent, to 235.52 points.
“Land prices have been increasing and there are lots of investors who think the housing companies will benefit from this, said Mohamed Kotb from Prime Asset Management.
“The housing companies own lots of land and land prices have been going up with the general improvement in the economy, another of the traders said.
Sixth of October Development and Investment (SODIC), one of the day s most traded shares in terms of value, last traded up LE 4.44 ($0.77), or 3.5 percent, at LE 129.75.
Cairo Housing and Development last traded up LE 0.58, or 4.9 percent, at LE 12.31.
Orascom Telecom (OT), one of the most liquid stocks on the Egyptian market, fell LE 9.75, or 1.6 percent, to LE 592.01.
“OT suffered because there are no investors from Western markets trading during the holidays, one of the traders said. – Reuters