CAIRO: Egypt’s main index closed higher on Tuesday as investors regained interest in blue chips that had suffered from a widening crackdown on graft that has targeted former officials of deposed president Hosni Mubarak’s government, traders said.
The index gained 2.5 percent to 5,015 points.
"This is a natural market reaction after sharp losses in the past period. There was buying power towards the end of yesterday’s session with interest in real estate stocks and Commercial International Bank," said Mohamed Swefy of Osool Brokerage.
Egypt put two former top ministers on trial on Sunday, widening a crackdown on graft as the army rulers seek to show they are tackling high-level corruption.
Citadel Capital, whose chairman Ahmed Heikal was banned by prosecutors from travel pending a corruption probe, gained 3.5 percent.
EFG-Hermes was the top gainer, up 8.8 percent.
Real estate developers, among stocks hit the most in Monday’s slide, also gained. Egyptian Resorts rose 7.5 percent, SODIC gained 5 percent, and Palm Hills was up 7.4 percent.
"Most of the blue chips that really got smashed for the past three sessions have seen a psychological rebound," said Mohamed Radwan of Pharos Securities.
The stock exchange had earlier on Tuesday suspended various stocks on the main index after they gained more than the maximum allowed.
Ezz Steel gained 2.4 percent. Credit Suisse on Tuesday cut its price target on the company to LE 7 from LE 13.3 to reflect political and regulatory uncertainty.
Orascom Telecom shed 1.4 percent after it posted a 2010 fourth-quarter net loss of $178.8 million, worse than forecast. The stock declined 4.1 percent on Monday before the results.
Commercial International Bank gained 1.3 percent. Goldman Sachs on Tuesday cut its price target on CIB to LE 33.05 from LE 48.22.
