Egypt up for second day on OCI gains

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CAIRO: Heavyweight Orascom firms make strong gains to lead the benchmark Egyptian index EGX30 2.8 percent higher for a second session of gains as traders see a return of foreign interest.

Orascom Construction Industries, the biggest listed firm by market value and the heaviest weight on the index, jumps 5.1 percent to LE 245.9.

“This is the normal rebound after negative news, says Sally Refaat, a trader from Cairo Capital Securities.

In the last two sessions the firm has compensated for Monday’s 7.8 percent hit, when investors withdrew fearing the affects of Dubai’s debt crisis. OCI says it has limited exposure after cancelling $200 million in Dubai projects in early 2009 and focuses its UAE operations in Abu Dhabi.

“It is a pure recovery, says Karim Hosny from Pharos Securities. “Yesterday we were halfway and now it is complete.

Fellow blue-chip Orascom Telecom (OT) adds 3.2 percent.

“I think the worst has already past, Hosny says.

OT shares have fallen more than 20 percent since it said in mid-November it owed $597 million to the Algerian government.

Commercial International Bank adds 5.1 percent and multi-industry firm Egypt Kuwait Holding jumps 6.2 percent.

Traders say the moderate volume session was notable for the return of strategic foreign investors, while small cap firms also gain.

“We are seeing a lot of buying flow from foreigners, those who build positions, Pharos’ Hosny says. -Reuters

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By Reuters
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