Strong results help Egypt shares end losing streak

Daily News Egypt
2 Min Read

CAIRO: Strong corporate results helped Egypt’s benchmark CASE 30 stock index snap a five-day losing streak to post the biggest single-day rise in two years on Thursday, brokers said.

The index jumped 4.8 percent to 8,223.08 points, the highest in at least two years according to Reuters data, one day after sinking five percent to the lowest point since September 3.

The Hermes index gained 4.4 percent to 723.13 points, while the broader CIBC index rose 3 percent to 393.02 points.

“A good day at last. Good results announcements helped the market create an upward correction, said Mohamed Fouad, managing director of Global Capital.

Investment Bank EFG-Hermes, the most heavily traded stock by turnover, rose 5.9 percent to LE 43.19 ($8.1) after posting a record quarterly profit in the three months to June as revenue from investment banking soared.

Shares in Ezz Dekheila Steel were 7.8 percent higher to last trade at LE 1497 after reporting a 50-percent rise in its first-half net profit.

Fixed-line monopoly Telecom Egypt also jumped 7.6 percent to LE 16.56 pounds after posting a 65-percent rise in net profit for the first half.

The National Société Générale Bank also rose 4.7 percent to LE 29.35 after making a 62 percent increase in net profit in the first six months of 2008 to LE 549.4 million.

Mohamed Tawfiq of Delta Rasmala Securities said investors’ appetite for buying was stimulated as prices became attractive after the recent market decline.

Shares of Orascom Telecom, which lost 37 percent of its value since May 4 to Wednesday’s close, rose 6.4 percent to LE 54.01.

“The cheap stock prices drove the management to a new buyback move of 45 million shares and investors read that positively, Tawfiq said.

Fouad of Global Capital said: “What will happen next week will all depend now on how retailers would respond on Sunday. If they sell to cash in profits, the correction will be short-lived and the downtrend will continue for the rest of the week.

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