CAIRO: Egypt s benchmark index gained for a fifth straight session on Wednesday, boosted by a global upsurge that helped heavyweight Orascom Telecom (OT) gain more than 10 percent in heavy volumes.
Global markets surged on Tuesday after Citigroup s chief executive said the US bank was making profits.
The main driver for the markets now is the telecom sector and a reflection of what happened in the global markets yesterday, said Mohamed Ashmawy from CIBC Brokerage.
The regional mobile operator was heavily traded for a second day, after gaining almost 5 percent on Tuesday. It ended 10.11 percent higher at LE 20.25 ($3.57), after peaking at LE 20.60 in intra-day trade.
OT is catching up, most of these (big cap) stocks have been up lately every day between 2, 3 and 4 percent and OT was down, Ashmawy said.
Orascom Telecom, the largest Arab telecom firm by subscribers, was the third-worst performer over the last five sessions on the EGX 30 index, according to Reuters data.
OT is at very, very low prices, there is nothing unique about it. It is cheaper than most stocks on the market in terms of financial ratios, Wafik Dawood from Naeem Brokerage said.
Other telecom firms were mixed. Mobinil followed OT higher, adding 1.99 percent to LE 151, while landline monopoly Telecom Egypt slipped slightly.
Fellow heavyweight Orascom Construction (OCI) gained 3.51 percent to LE 126.06. Traders said OT and OCI are usually the first Egyptian stocks to gain in any global rebound.
Foreign investors, who accounted for just under 12 percent of the day s trade, were the only net sellers by LE 42 million.
Naeem s Dawood said foreign selling during recent rallies showed a sophisticated trading pattern that assumes a bearish market.
We are still in the middle of the crisis so fundamentals are twisted, he said, adding that company valuations were mixed. That s why even institutions are relying more on trading strategies to get in and out of the market, more than fundamentals.
The benchmark EGX 30 index rose 2.34 percent to 3,712.82 points, while the rival Hermes rose 1.97 percent to 352.54 points. The broader EGX 70 edged up 0.97 percent to 448.74 points.
