Egypt index gains slightly, small caps in focus

Daily News Egypt
3 Min Read

CAIRO: Egypt s benchmark index rose slightly on Sunday in light trade with retail investors moving into selected small caps, and investment bank EFG-Hermes surged as investors saw it as undervalued.

EFG-Hermes gained 7.79 percent to LE 13.83 ($2.46), while the benchmark EGX 30 index added 0.42 percent to 3,982.28 points. The rival Hermes index climbed 0.78 percent to 376.87 points, and the EGX 70 index closed 2.4 percent higher.

There is some interest in the stock at these levels and some investors are buying to accumulate, Mohamad Radwan from Pharos Securities said of EFG-Hermes. The stock has lost roughly 80 percent of its value since January 2008.

The day s gainers also included Ghabbour Auto, which rose 2.2 percent to LE 10.70. Appliance maker Olympic Group added 5.54 percent to LE 15.80.

Wafik Dawood from Naeem Brokerage said retail investors focused on milling firms such as South Cairo and Giza Mills, which jumped 20 percent to LE 40.24. Middle Egypt Flour Mills also gained, adding 5.96 percent to LE 11.02.

It is a cyclical performance with the small caps. There is rotation going on, he said, adding that the milling sector had not moved in recent weeks when other small cap sectors gained.

Other small firms to jump more than 10 percent include Ahly Development and Investment, up 11.78 percent to LE 17.75, and Giza Contracting, which gained 10.54 percent to LE 35.98.

We have seen a lot of liquidity and a lot of speculation going on in small caps due to the fact people are getting back into the market, Dawood said.

Shares in Mobinil, Egypt s largest mobile operator by subscribers, ended 0.26 percent lower at LE 148.50 after trading lower early in the session.

The company s chief executive told Reuters on Sunday it was on track to meet its target for 10 percent revenue growth this year.

The stock exchange said that 39 million shares in Bank of Alexandria were traded on Sunday for LE 28.38 each without giving further details. The deal represents 9.75 percent of the bank s listed equity.

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