EGX gains 6.9B EGP boosted by Global Telecom deal
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange indexes collectively rose Tuesday, and market capitalization gained roughly 6.9 billion EGP (U.S. $987.1 million), boosted by telecom sector stock topped by Global Telecom.

The benchmark index EGX30 jumped 2.04 percent to hit 8,269 points, compared to 8,103 points on Thursday, ending a corrective movement after penetrating a resistance level of 8,100 points for the second session in a row.

The small and mid-cap index EGX70 went up 1.3 percent to 614 points, and the broader EGX100 index also gained 1.1 percent to reach 1,074 points.

Market capitalization gained more than 6.9 billion EGP, reaching 484.5 billion EGP, compared to 477.6 billion EGP on Thursday, the last session before weekend and Easter holidays.

Head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed attributed EGX30’s significant rise to Global Telecom Holding (GLTD.L) along with the Russian VimpelCom Ltd signing a share purchase agreement.

“The deal states Global Telecom will sell 51 percent of its stake in Orascom Telecom Algerie SpA to the Algerian National Investment Fund for $2.643 billion,” Saeed told The Cairo Post.

Saeed further expected the benchmark to move in sideways on Wednesday, with minor profit taking transactions.

“EGX30 will test a new resistance level at 8,400 points next week after resuming trade on Sunday,” Saeed added. The EGX will suspend trading on Thursday, marking Sinai Liberation Day.

Egyptians’ net purchases registered 33 million EGP Tuesday, while Arabs and foreigners’ net sell-offs reached 24.2 million EGP and 8.8 million EGP respectively.

On Thursday, the EGX ended up, amid high liquidity ahead of Easter celebrations, and market capitalization gained more than 1.7 billion EGP, reaching 477.6 billion EGP, compared to 475.9 billion EGP on Wednesday. Turnover reached 543 million EGP.

The small and mid-cap index EGX70 went up 0.9 percent to 606 points, and the broader EGX100 index also gained 0.7 percent to reach 1,062 points.

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