CAIRO: Egypt’s main index closed 0.6 percent up, driven by construction and real estate and high investor expectations for corporate earnings.
Sixth of October Development gained 2.6 percent. Egyptian Resorts rose 2.5 percent and Nasr City Housing inched up 1.7 percent.
“This is a time for small-denominated stocks, and Upper Egypt and Egyptian Resorts both share the LE 2-4 ($0.364-0.729) range which is the favorite range of retail investors, said Osama Mourad from Arab Finance Brokerage.
Upper Egypt Contracting increased 1.3 percent.
Construction stocks gained after the government forecast strong growth in the sector, Mourad adds.
Traders said corporate earnings are meeting and exceeding investor expectations.
“The market is going upwards on high expectations of corporate results. We expect to continue to see that, especially in earnings season, Mourad said.
Karim Hosny from Pharos Security said the market has not broken new levels: “It is the same flat range for the last week. We need an extra positive sentiment that will break these levels, he says adding that 7,200 point mark is the next level.
The index closed at 7062.7 points at end of trade. -Reuters