CAIRO: Egypt’s main index inched up by midsession, led by Orascom Construction Industries (OCI) in the belief that it may win new contracts in Qatar, which was just chosen to host the 2022 soccer World Cup.
Orascom Construction Industries (OCI), which has a 18.6 percent weighting on the 30-firm index, gained 4.1 percent as investors speculated it may win extra contracts in Qatar.
"OCI has around 18 percent of its backlog in Qatar," said Chamel Fahmy, a trader at Pharos Securities. "People are anticipating that this might … help OCI get a new contract award in Qatar and take advantage of the (world cup) event."
Mohamed Magdy, senior account executive at Prime Securities, said: "OCI has a good weight on the index. It is rebounding now so that is what gives the market index a push."
Some LE 59 million ($10 million) of shares in OCI changed hands on Sunday, making it the most active stock on the Egyptian Exchange.
Ezz Steel also rose 3.3 percent by midsession, buoyed by gains in global steel prices,
Ezz Steel’s posted a net profit of LE1.65 million ($285,400) for the third quarter, reversing its net loss from a year earlier ago and beating all analyst forecasts.
Talaat Moustafa declined 1.2 percent and El Sewedy Cables sheds 0.4 percent.
The index, EGX30, rose 1.1 percent to 6,762 points.
