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Surging OT shares buoy Egypt index - Daily News Egypt

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Surging OT shares buoy Egypt index

Heavyweight Orascom Telecom (OT) surged 12 percent, its biggest rise since January 31, after it said it expects to know the outcome of talks to sell some of its African units to South Africa’s MTN within days. OT’s rally helped push up the main index, which rose 2.8 percent in its third session of gains. …


Heavyweight Orascom Telecom (OT) surged 12 percent, its biggest rise since January 31, after it said it expects to know the outcome of talks to sell some of its African units to South Africa’s MTN within days.

OT’s rally helped push up the main index, which rose 2.8 percent in its third session of gains.

"The whole market is up, piggybacking on OT," said Teymour El-Derini of Naeem Brokerage.

OT closed at LE 6.06 ($1.07) per share, its highest close in more than two weeks.

The Egyptian financial regulator sent OT a request for clarity on material news that could be moving its share price, the stock exchange said in a statement.

On Thursday OT said it would negotiate the sale of its Algerian unit to the Algerian government, which had blocked its possible sale to MTN. Analysts say the Algerian unit would be the key component of a broader deal.

Traders said OT shares are further boosted by market speculation that OT and MTN might strike a deal excluding Djezzy.

Any deal is likely to push OT shares higher, said Hashem Ghoneim of Pyramids Capital, adding that the telecoms firm still looks undervalued with a market capitalization of just over $5 billion.

"This is the kind of news we needed to hear that the market has been lacking lately," he said.

Shares in investment bank EFG-Hermes could also be supported because the bank would likely play a role in carrying out a deal, Ghoneim said.

EFG-Hermes added 3 percent. The EGX30 closed at 6,517 points.

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https://www.dailynewsegypt.com/2010/05/30/surging-ot-shares-buoy-egypt-index/
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