CAIRO: The market strongly zigzagged this week, reversing trends almost on a daily basis. As several stocks fell to cheap levels over the past weeks, investors grabbed stocks they deemed a bargain relative to earnings expectations.
Overall, Egypt s benchmark CASE 30 Index gained 0.28 percent to end the week at 9,382 points.
The market closed in the green on Sunday, rising 1.3 percent to 9,475.17 points on a low turnover of LE 0.8 billion ($148.2 million), mainly pulled up by shares of Orascom Telecom (OT).
Shares of Egypt s largest mobile operator by market value surged 4.2 percent to LE 60.91, as investors deemed them cheap. The stock fell nearly7 percent the previous week.
Shares of OT are trading at 12.08 times expected 2008 earnings, compared to a Middle East sector average of 12.56 times earnings, according to Reuters data. The company offered to buy back its own shares twice this year at LE 83 per share, saying it had a large cash surplus that exceeded investment opportunities.
Shares of sister company Orascom Construction Industries (OCI) also soared 2.4 percent to LE 405.32 on a turnover of LE 49.3 million, as investors were trying to take advantage of valuations after the stock fell to attractive levels.
Ahead of the summer construction boom, shares of real estate developers also performed well. Shares of Sixth of October Development and Investment (SODIC) led gains in the real estate sector and surged 6.8 percent to LE 141.74. Shares of Nasr City Housing gained 1.9 percent to LE 47.52.
The market reversed its uptrend on Monday, with the index slipping 1.3 percent to 9,350.91 points on a turnover of LE 1 billion ($186.4 million).
Shares of Egyptian developer Talaat Moustafa Group posted Monday their sharpest single-day drop in almost three weeks on concerns of lower profits. The stock lost 3.7 percent to LE 8 – its lowest share price since the company sold shares in an initial public offering last year.
Construction conglomerate OCI also closed in the red, sinking 2.9 percent to LE 393.58 on a turnover of LE 55.2 million, while shares of OT declined 0.9 percent to LE 59.41.
Meanwhile, shares of El-Ezz Steel bucked the trend and nudged 3.2 higher to LE 76.58 after its share price fell to cheap levels relative to the market.
The stock is trading at 7.62 times expected 2008 earnings, according to
Reuters data.
The market extended declines on Tuesday, pulled to its lowest close in eight months, as investors sold in property firm shares. The index dipped 0.5 percent to 9,302.39 points on a turnover of LE 872.2 million ($164.3 million).
Shares of SODIC led declines this time, falling for the second straight session. The stock plummeted 4.5 percent to LE 130.68. Shares of Cairo Housing lost 4.9 percent to LE 7.90, while Nasr City Housing saw its shares shed 2.2 percent to LE 46.15.
On the green side of the market, shares of OT climbed 0.7 percent to LE 59.85 on a strong turnover of LE 70.6 million. Shares of the regional mobile operator were boosted by news it was part of a consortium chosen to create a new Canadian wireless operator.
Shares of the firm are trading at 12.27 times estimated 2008 earnings, compared to a Middle East sector average of 12.66 times, according to Reuters data.
Shares of OCI moved 0.2 percent higher to LE 394.43 on a turnover of LE 46.8 million, while Al Ezz Steel gained 0.2 percent to LE 76.75 after HSBC started coverage of the firm with a price target of LE 119.
The market rebounded on Thursday lifted by shares of EFG-Hermes that also fell to cheap levels over the past weeks. The index gained 0.9 percent to 9,382.51 points.
Shares of Egypt s largest investment bank by market value – down 31 percent this year to Tuesday s close – soared 6.6 percent to last trade at LE 48.50. The stock recovered on Thursday after it was hit by strong selling activities that knocked it to attractive buying levels.
Shares of Commercial International Bank (CIB) – Egypt s largest lender by market value – rose 1.7 percent to LE 76.24, as its valuations attracted investors.
