CAIRO: Egypt’s benchmark index ended higher, led by Talaat Moustafa Group (TMG) as investors favor real estate stocks ahead of property developer Amer Group’s shares debut on Tuesday, traders say.
Amer priced shares sold in its IPO — oversubscribed 5.8 times — at LE 2.8 each, valuing the company at LE 5.7 billion ($987 million).
Shares in Egypt’s biggest listed property developer TMG gained 2.5 percent.
"Amer Group’s trading debut might be positively influencing a number of real estate stocks including Talaat Moustafa," said Chamel Fahmy of Pharos Securities.
Credit Suisse said the market looks set to benefit in the coming days from the outcome of Egypt’s parliamentary elections, which took place on Sunday without major violence.
"On most counts, the National Democratic Party will win by a landslide, and save for the incidence of any severe civil unrest unfolding in the ensuing days, the market should respond positively," Credit Suisse’s emerging equities strategist Robert Ruttman said in an email.
EFG-Hermes, which will announce third-quarter earnings on Tuesday, rose 0.8 percent. Egypt’s biggest listed lender Commercial International Bank advanced 0.4 percent.
Index heavyweights Orascom Construction and Orascom Telecom, however, ended lower on investor concerns that a rescue deal for debt-soaked Ireland will not contain Europe’s debt crisis, traders said.
EU finance ministers on Sunday endorsed an €85 billion ($112.6 billion) bailout package for Dublin, including €10 billion to recapitalize Irish banks in the coming months and €25 billion more for them if needed.
"Investors are worried about buying aggressively into emerging markets on worries Ireland’s debt troubles might be contagious to other European countries, including Spain and Portugal," Fahmy added.
Orascom Construction lost 0.4 percent and Orascom Telecom dipped 1.1 percent.
Egypt’s EGX30 ended 0.4 percent up to trade at 6,816 points.
