CAIRO: Ezz Steel and real estate developers helped lift Egypt’s benchmark index higher in early trade buoyed in part by government comments that some investors took as a signal of more spending on infrastructure.
Planning and International Cooperation Minister Fayza Aboul Naga said on Sunday the government was seeking investments worth LE 233 billion ($39 billion) in the financial year 2011/12, with about half of that from the private sector.
"Some read between the lines … that infrastructure and other investments would be a priority in the coming period," said Cairo-based investment and capital market analyst Nader Khedr.
Ezz Steel rose 7.2 percent, compared to the benchmark index which was up 0.4 percent.
Orascom Construction Industries (OCI) climbed 0.5 percent, buoyed by rising fertilizer prices and its share buy-back plan.
"Fertilizer prices have been strong this quarter and that helps OCI," says Teymour El-Derini of Naeem Brokerage.
Real estate developers, which have been among the hardest hit in the political upheaval since the start of the year, are also rising. Shares in Palm Hills Development Company climbed 6.9 percent.
"I am seeing some strength coming in the real estate sector. Since yesterday there has been quite a climb," said Derini. "These stocks were most hit after the revolution so they are catching up."
The resolution of a land dispute between Egypt and Saudi investor Price Alwaleed bin Talal boosted confidence that other land rows could be resolved, which would help developers.
