CAIRO: Egypt’s benchmark share index closed 0.8 percent higher, overcoming concerns that protests scheduled for Friday may prolong the country’s political and economic instability.
Traders said nerves calmed over the course of the day after anxiety over the country’s political direction pushed the benchmark index down 2.2 percent on Wednesday, its biggest one-day drop since June 2.
"The market picked up towards the end, because Wednesday was a steep fall and on Thursday there was no selling pressure from institutions, which relaxed retail sentiment," said Omar Darwish of CIBC Brokerage.
"After yesterday’s sell-off, traders are bargain hunting for discounted stocks," said Osama Mourad of Arab Finance Brokerage.
"The participation of all the different political parties and coalitions has made investors more comfortable as we can exclude confrontations from this Friday’s demonstrations."
On Wednesday, Egypt’s well organized Muslim Brotherhood announced it would join the Friday protest, a move that some analysts said may help to reduce tensions.
Investment bank EFG-Hermes was the bourse’s second most traded stock, with shares worth over LE 19.1 million changing hands. It closed 3 percent higher.
"Generally, financial sector stocks are those that outperformed the market, as investor confidence in the sector was boosted after the Pioneers news this week," said Darwish.
Pioneers Holding, which closed flat, said on Tuesday it could spend up to LE 500 million to buy controlling stakes in housing and industrial firms listed on Egypt’s stock market.
Other financial sector stocks that gained include private equity firm Citadel Capital, which rose 2 percent, and Commercial International Bank, the country’s biggest private bank, which added 2.3 percent.
Telecom Egypt shed 0.2 percent. It has delayed the start-up of a marine cable because of a delay in getting the necessary licenses, according to a media report.
The EGX30 closed at 5,360 points.
