CAIRO: Major Egyptian shares rose on Thursday, lifted by a rebound in global equities and the heavy-weighted Orascom Telecom as the market digested news it was buying a majority stake in a Pakistani mobile operator, traders said. Pakistan has a huge potential and now OT being a majority shareholder will move the company forward in the direction it wants and get more profit. It s positive news, said Yasser Hassanein of Dynamic Securities, adding the market didn t initially react to the news. Along with Orascom Construction, it makes up 50 percent of the CASE30 Index, so any movement in those shares takes the index up or down.
OT said on Monday it was buying the remaining 11.3 percent stake in its Pakistani mobile operator Mobilink for $290 million. Mohamed Kotb of Jazira Asset Management said OT and sister copmpany Orascom Construction Industries (OCI) also gained on the back of the rebound in equity markets in the United States, Europe and Emerging markets. Orascom Telecom closed 2.8 percent up at LE 73.09, while OCI closed 1.3 percent up at LE 373. OCIC said on Wednesday a subsidiary, the Syrian Cement Company, had signed a deal with Denmark s FLSmidth to build a $360 million greenfield cement plant in Syria. The rebound in international equities affected the leading shares in the Case 30 Index, Kotb added. The rest of the market was mixed because the first half of the financial year is ending for some companies, Hassanein said. Ezz Dekheila Steel, the third most heavily traded share by turnover, fell 2.8 percent to 1030 pounds one day after HC Securities Brokerage said the holding Ezz Group sold a 10 percent stake in subsidiary Ezz Steel for $160.1 million. There is a question mark about why the board members are selling its shares at this low price, Kotb said. Overall, the benchmark Hermes Index rose 0.4 percent to close at 69,671.65 points, and the well watched Case 30 Index gained 0.6 percent to 7,803.40. The broader CIBC index, however, shed 0.9 percent to end at 341.82 points.
