Egyptian shares steady, OCI shines again

CAIRO: Optimism about market heavyweight Orascom Construction Industries (OCI) countered selling pressure by retail investors to help Egypt s main stock indexes end steady on Wednesday. It is the second day foreign buyers have been buying large cap stocks like OCI, while on the other hand retail-led stocks have been going down because of profit-taking, said Mohamed Kotb of Jazira Asset Management. Traders said foreign investors were bullish about OCI prospects on the back of its recent expansion plans. The firm said on Sunday it had signed a deal with a government company to construct a power plant for LE 760 million ($134 million). Shares in Orascom Construction Industries, one of the most heavily-traded stocks by turnover, rose 1.4 percent to LE 320.01 a share. Two other heavily-traded stocks, Sidi Kerir Petrochemicals and Cairo Poultry both rose after the stock exchange said both companies had declared cash dividends for shareholders, traders said. Shares in Sidi Kerir rose 2.4 percent to LE 21.48 while Cairo Poultry rose 5 percent to close at LE 26.68. Egyptian Resorts Company, popular among retail investors, led the session as the most heavily traded stock by turnover, falling 4.5 percent to LE 26.25 pounds. Overall, the benchmark Hermes index dipped 0.1 percent to 65,694.83 points, and the widely watched Case 30 index followed suit to close at 7,458.54 points.