CAIRO: Egypt’s main index shrugged off a Sunday slump to gain 2.5 percent on the back of further gains in blue chips including Orascom Telecom (OT), which added 3.4 percent.
OT has gained 35 percent since the start of the year, versus an 11 percent rise in the overall index in the same period.
“There was a nice rebound on OT, OCI, EFG, some nice buying going on, said Hashem Ghoneim from Pyramids Capital.
Orascom Construction (OCI) and EFG-Hermes each gained 2.4 percent and Commercial International Bank rose 3.1 percent.
Ghoneim said investors sold late in the session as eyes turned to US futures markets, which indicated a lower opening.
“We are at the 7,000 level which is not easy to sustain. So if we stay above this level for two or three days it is a good sign, Ghoneim said, adding the index will likely track US indices until corporate earnings are released later this month.
The index dipped below that psychologically important level in the last minutes of trade, after trading above for most of the session.
Sara Shadid from CIBC brokerage also said the market is waiting for earnings, adding that confidence is returning.
“There is plenty of potential. We are expecting good results from at least two-thirds of the companies this quarter, Shadid said. -Reuters
