Egypt shares up as state insurance resumes trade

CAIRO: Egyptian shares rose on Monday, led by Orascom Telecom and housing and real state stocks because a major state-owned insurance body resumed trading on the Egyptian exchange, dealers said. The National Authority for Social Insurance, which has portfolio investments in the stock exchange, did not buy or sell shares from June 15 until June 30, the last 15 days of its fiscal year, said Mostafa Badra of Osool Equities Brokerage. Today is the first day in the new fiscal year of the government insurance companies and institutions, which today started trading in equities again, Badra said. At the beginning of the day, share prices were very tempting, and we ve seen a jump in equities registered in exchanges abroad, such as Orascom Telecom and EFG-Hermes . Mohamed Fathallah Mohamed of Optima Securities said Orascom Telecom rose because some Egyptian brokerage houses revalued the company s shares at a range between LE 90 to 100. Orascom Telecom, which along with Orascom Construction Industries makes up 50 percent of the Case 30 Index, ended 3.7 percent up at LE 75.35. Orascom Construction closed 1.5 percent up at LE 378 pounds. Alexandria Real Estate Investment and Development, the most heavily traded stock by turnover, gained 5.4 percent to close at LE 515. Mohamed said housing and real estate shares jumped due to positive news about the sector s increased sales but said there were no specific data. In general, there is an increased demand on housing and real estate from Egyptian and Arab investors, Mohamed said. Overall, the benchmark Hermes Index rose 1.7 percent to close at 70,844.22 points, and the well- watched CASE30 Index gained 1.8 percent to end at 7,944.39. The broader CIBC index closed 1.5 percent up at 346.93.