Egypt stock benchmark jumps to highest in 15 months

CAIRO: Egypt s benchmark Hermes stock index jumped to its highest close in more than 15 months on Sunday as surging markets in the United Arab Emirates boosted confidence among foreign investors, traders said. The Hermes index rose 0.8 percent to 68,274.93 points, its highest since February 2006. The well-watched Case 30 index gained 0.8 percent to 7,625.26 points, its highest in more than a week. The broader CIBC index jumped 1.7 percent to a life-high of 344.23 points. There are a lot of common investors in the two markets, said Mohamed Radwan, institutional sales trader at Delta Securities. When the markets around you are going up, there is more confidence. In the United Arab Emirates, Abu Dhabi s main index posted its biggest one-day rally in more than a year and Dubai s benchmark closed higher for a fourth trading day. Housing shares led Egypt s rally, extending gains to a third trading day. Medinat Nasr Housing, the most heavily traded share by value, surged 14 percent to LE 374. Shares of the company have more than doubled in the past month after land fetched high prices at government auctions. Misr Gedida Housing, the second most traded stock by value, gained 8.8 percent to last trade at LE 588.90. Housing stocks certainly seem to have momentum, said Angus Blair, head of research at Beltone Financial. You have a fundamental shift in businesses and residents moving out into new areas and you will continue to see housing stocks rise. Housing stocks were trading a few points above the market s average price-to-2007-earnings ratio of between 15 and 16, he said. They may historically look at the top end but earnings growth is going to be better than the market, he said.