CAIRO: Egypt’s main index rose 1.2 percent, boosted by heavyweight Orascom Telecom after it reported first-quarter results that showed a better operating performance than some analysts expected.
Orascom shares were up 7.2 percent, the second best performer on the index. Analysts welcomed the results, especially a bigger than expected gain in earnings before interest, tax, depreciation and amortization (EBITDA).
Traders say many investors are looking beyond the results to Orascom’s future structure after Russian operator Vimpelcom bought assets of Orascom’s parent company Wind Telecom in a $6 billion deal last month.
"People seem happy with Orascom’s EBITDA … but you won’t see the stock picking up for that reason," said one Cairo trader, who said investors were now "waiting for restructuring news to move, not financial results."
The Egyptian benchmark index has gained almost 4 percent this week as local retail investors and some Arab Gulf investors return to the market, traders said.
Real estate stocks Palm Hills and Talaat Moustafa have soared 23 percent and 27 percent respectively in the week, lifted by signals that the country’s interim military rulers are studying new rules to settle disputes between the government and private investors.
Talaat Moustafa gained 1.7 percent. Palm Hills closes down 1 percent on Thursday and
Ezz Steel, whose chairman resigned this week amid a corruption probe, leaped 10 percent.
