Egypt's Stock Market Gains with Orascom Deal Postponed

Egypt’s benchmark EGX30 index ended trading up by 1.66 percent to reach 5,407 points. The rise was triggered by the failure of Russia’s Altimo to secure a majority stake in Egypt-based Orascom Telecom Holding (OTH), meaning a probable rise in Altimo's offer. The news caused OTH to rise 5.69 percent.

Altimo was able to secure offers to sell from shareholders holding 15.9 percent of OTH stock listed on the Egyptian stock exchange, below the minimum 26.6 percent required for the buyout. Orascom Telecom Holding management this month advised shareholders to reject the Altimo offer, saying the price of $0.70 per share was too low.

Altimo said it was ready to take a smaller interest in the company if allowed by Egypt's financial market regulator. Also Juhayna Food Industries gained 6 percent after the company revealed that a LE140 million (approx. $20 million) loan will be used to finance expansions. The total daily turnover rose slightly compared to previous days, reaching LE184.43 million.

Large-caps Orascom Construction Industries (OCI) and Commercial International Bank (Egypt) also gained at 1 percent and 1.67 percent respectively. Foreign investors closed as net buyers, while domestic and Arab investors closed as net sellers. Out of 165 listed stocks, 65 gained and 53 lost value.