CAIRO: Egypt’s main index rose 0.3 percent, led by Egyptian Resorts and Commercial International Bank (CIB). Egyptian Resorts rose 3.6 percent after Samih Sawiris, the chairman of Swiss-based developer Orascom Development Holding (ODH), said he would join the firm’s board.
"ODH being a part of Egyptian Resorts is going to push Egyptian Resorts higher. It’s going to be an add value for the company’s performance and operations," said Mohamed Radwan of Pharos Securities.
"It will reflect on the share price going forward," he added.
CIB was up 4 percent on market talk the bank, whose general assembly will be held this week, would put out good dividends, traders said.
OT shares shed 0.3 percent despite gains in early trade, amid concern over the fate of the firm’s troubled Algerian unit.
OT has been wrangling with Algeria over a potential $9 billion deal to sell some or all of OT’s assets to South Africa’s MTN. Algeria said last month it would block an MTN purchase of Djezzy, threatening a key part of the deal.
"The uncertainty in Orascom Telecom — whether it’s going to be sold or not — is creating volatility in the market," said Radwan.
"The market can’t sustain its gains for four hours continuously," he added.
The secondary index declined 0.9 percent. Its main gainer was Arab International Construction, which rose 0.7 percent on market speculation the firm may soon list on the main index, said Osama Mourad of Arab Finance Brokerage.
"We are seeing now a divergence between the EGX30 and the EGX70, where investors are more optimistic and confident towards investing in large caps," said Mourad.
The main index closed at 7,349 points and the secondary index at 703 points.