Egypt Stock Market Gains 2pct on Real Estate Rebound

Egypt's stock exchange witnessed a healthy surge Wednesday driven by positive trading on the Commercial International Bank (CIB) as well as the real estate sector. The main EGX30 index grew 1.86 per cent to sit at 5,420 points by the end of the 4-hour session. Turnover reached LE563 million ($91 million), a sign of recovery in the beleaguered market. The market has registered 49.6 per cent growth since the beginning of 2012.

Egypt's largest listed commercial bank, CIB, saw a LE59 million trading volume. It grew by 2.56 per cent to close at LE34.86 per share. CIB is a leading stock whose performance reflects on the whole market. Arab investors were the main buyers in today's session at LE28.5 million in net-buys.

Real estate developer Palm Hills Development (PHD) was the most active share in the session, at LE61 million. It's share price increased by 4.55 per cent to reach LE2.53. PHD was positively by the positive affected by the court order Tuesday acquitting Ahmed El-Maghraby, a Mubarak era minister of housing, on charges of illegally selling land to investors.

While PHD was not involved in the Ahmed El-Maghraby case, the court ruling helped restore investor confidence in the real estate sector that has seen land allocations contested in other court rulings. Private equity house Citadel Capital was also very strong in the session, marking LE44.6 million in turnover and gaining a substantial 5.13 per cent. The company has announced a raft of new investments in the cement sector and the acquisition of a petroleum firm.

Out of 167 shares traded on Wednesday, 127 closed in the green while only 15 dropped and 25 remained unchanged. EFG-Hermes, Ezz Steel and Talaat Mostafa Group were also very active in today's session, gaining 1.76, 2.95 and 3.46 per cent respectively.