CAIRO: Egypt s benchmark Hermes stock index hit an all-time high on Wednesday led by investment bank EFG-Hermes, which rallied to a one-year high after breaking a key technical price level.
Shares in EFG-Hermes, the most heavily traded stock by turnover, closed 5 percent up at LE47.30 ($8.3), the highest since May 21, 2006 according to Reuters data.
Breaking the LE 45 mark was key for EFG, a Cairo-based trader said. When it did this two sessions ago and stayed above, people who watch the technical factors bought more in the stock.
Mobile operator Mobinil also rose significantly for the second straight session, ending 9.3 percent up at LE189.90 after chief executive Alex Shalaby said the firm was likely to apply for a third-generation mobile licence in 2007.
Regional mobile operator Orascom Telecom rose 1.5 percent to LE74.25 a share. The company holds a 33 percent-stake in Mobinil.
There was a flow of foreign buying in OT today, said Mohamed Kotb of Jazira Asset Management. The overall picture of the market looks positive, so this has probably encouraged foreign investors to buy.
Shares in Al Watany bank also rose 3.1 percent to LE46.05 after it said the Egyptian central bank had allowed three banks, two from Kuwait and one from Greek, to conduct due-diligence studies that may lead to a takeover bid.
A Watany Bank spokeswoman told Reuters the three banks are the National Bank of Kuwait, the Commercial Bank of Kuwait and Greek lender EFG Eurobank.
Overall, the benchmark Hermes index closed 1.3 percent up at 70,952.61 points. The well watched Case 30 index closed 1.5 percent higher at 7,981.15 points, flirting with a fresh 17-month high.
