CAIRO: Egypt’s benchmark index surged 4.2 percent to its highest since July 27, spurred by perceptions that economic growth has begun to accelerate after a year of economic and political turmoil, traders said.
The market was also spurred by an announcement that France Telecom had agreed to buy most of Orascom Telecom Media and Technology’s (OTMT) shares in Mobinil at a substantial premium over their current price.
"There is a positive sentiment toward the economy in general and on politics," said Omar Ascar of Cairo Capital Securities. "There is a move in all sectors."
Traders said many investors were relieved that a countrywide strike that activists called for starting Saturday passed off with few disruptions, and that serious steps are being taken to resolve land disputes.
They also expect positive results for the banking sector.
The index rose to as high as 5,136 points before slipping back to 5,099.
Among blue-chips, landline monopoly Telecom Egypt gained 9.1 percent, Ezz Steel 6.7 percent and Commercial International Bank 4.5 percent.
There was virtually no trade in OTMT or Mobinil, which had many potential buyers at the stock market’s maximum 10 percent limit up, but no sellers.
