CAIRO: The Egyptian Exchange is likely to surge Sunday, powered by Mobilink, a leading cell phone operator in Pakistan and a subsidiary of the EGX listed Global Telecom Holding (GTH), getting a 15-year spectrum for the 3G mobile network in return for $ 300.9 million.
Global Telecom, which is 51.9 percent owned by the Russian VimpelCom, announced Thursday that its Islamabad-based affiliate Mobilink has won a spectrum for 3G in an official auction conducted by the Pakistani Telecommunication Authority on Wednesday, reported Mubasher business website.
“Granting the 3G spectrum license paves the way for launching the cell phone 3G services in Pakistan during 2014,” said Ahmed Abu Doma Global Telecom’s CEO in a statement.
“This will establish our commitment to the Pakistani market, as well as our obligation to maintain Mobilink’s leading role in Pakistan’s cell phone market,” Abu Doma added.
“The benchmark index EGX30 will probably boom during Sunday session, receiving strong support from positive news about the blue chip GTH for a second week in a row,” head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed told The Cairo Post Friday.
The Mobilink deal comes few days after GTH announced resolving the Djezzy long-standing dispute with the government of Algeria, Saeed added. “This will increase optimism among investors and shareholders, as well as boosting GTH’s revenues.”
However, the market is greatly expected to face a wave of profit taking among selling pressures by foundations following the expected rise during this week, Saeed added.
EGX indexes collectively rose during this week, which was limited to two sessions only, strongly supported by the significant rise of Global Telecom stock following the settlement of the Djezzy by selling 51 percent of its subsidiary, Orascom Telecom Algeria, also known as Djezzy to the Algerian government.
The benchmark index EGX30 jumped 2.36 percent to reach 8,294 points, compared to 8,103 points last week, ending a corrective movement after penetrating a resistance level of 8,100 points for the third session in a row.
Further, the small and mid-cap index EGX70 slightly edged up 0.64 percent to close at 610 points, and the broader index EGX100 ended the week up 0.48 percent to close at 1,067 points.
Market capitalization gained roughly 4.8 billion EGP ($690 million,) recording 482.4 billion EGP, compared to 477.6 billion EGP last week.