CAIRO: Egyptian shares climbed higher on Thursday, with Commercial International Bank (CIB) soaring on optimism over its chances to win an auction for up to 80 percent of state-owned Bank of Alexandria, traders said.
Shares in CIB, one of six candidates short-listed to buy the stake, jumped 6.6 percent to close at LE 49.80 ($8.68) per share, outperforming the benchmark Hermes index, which closed 1.8 percent higher at 56,139.68 points. The Bank of Alexandria deal next week will have an effect on the market, said Mohamed Kotb of Jazira Asset Management, adding that CIB shares were already rising due to the auction.
People think they will succeed in getting this deal, he added.
The government has set Monday as a deadline for bids for a majority stake in Bank of Alexandria, and an auction is scheduled for Tuesday. Bank of Alexandria had assets of about LE 40 billion in February.
Egypt s well-watched Case 30 index gained 1.6 percent to close at 6,302.41 points. The broader CIBC-100 index rose 1.3 percent to 257.42 points.
Shares in Telecom Egypt, the day s most heavily traded stock, rose 5.9 percent to close at LE 16.56 a day after its deal to raise its stake in Vodafone Egypt was executed.
The cash from the Vodafone deal will enter the market on Sunday, but the market was already affected. Dealers said Telecom Egypt shares were likely rising as investors who sold Vodafone Egypt stock re-invested their earnings in Telecom Egypt. They said other blue chip stocks were also affected.
Meanwhile shares in El Sewedy Cables jumped 3.5 percent to LE 42.82 after investment bank EFG-Hermes maintained its buy recommendation on the stock and kept its fair value target at LE 58.50.Shares in EFG-Hermes, a stock popular among retail investors, gained 2.4 percent to LE 39.39, while Arabia Cotton Ginning gained 1.3 percent to end at LE 12.05.
