Market Report: Egypt stocks up 2.6 per cent on Euro debt deal

Main index hits its highest level in five weeks as high-caps ride the upswing in global equities that followed Thursday's Greek debt agreement

Egyptian stocks surged into the green in the week's first trading session, buoyed by forthcoming parliamentary elections and an upswing in global equities in the aftermath of a deal to stem Europe's spiralling debt crisis.
The benchmark EGX30 finished Sunday up 2.6 per cent at 4,452.8 points, its highest level in five weeks, powered by steady across the board activity.
"People are encouraged by election proceedings, they're starting to hunt for lucrative stocks, those with upside potential," said Walaa Hazem, vice president for asset management at Cairo-based HC Securities & Investment.
The uptick in stock markets elsewhere in the world also had an effect on Sunday trade.
On Friday, global stocks had their best in week in over two years after Euro zone leaders struck a deal with private banks and insurers for them to accept a 50 per cent loss on their Greek government bonds.
"The deal had a positive effect on global equities so Egypt has benefited from the general optimism," Hazem explained.
From 178 listed stocks, 127 gained in value and 36 declined, with almost all sectors finishing in the green.
High-caps led the way, with trade in Orascom Telecom (OT), Commerical International Bank (CIB) and Orascom Construction Industries (OCI) making up a third of the day's total turnover of some LE277.5 million.
"The market has lost a lot of money [over the last month], its normal that they are now gains," said Hazem. "Some people are buying stocks because the prices have fallen to bargain levels, others see large gains to come."
Other factors were also at play -- OT was one of the day's major winners, up 5.08 per cent, as technical analysts recommended buys based on the stocks's statistical performance.
Egypt's oldest mobile operator Mobinil performed strongly too, despite last week's announcement of a 96 per cent drop in third-quarter profits.
Substantial buying power drove its stock near the 10 per cent upper limit, prompting a half-hour suspension on its trade. Mobinil eventually closed Sunday 5.79 per cent up.
Commercial International Bank, oft a weathervane of foreigner interest, also gained a hefty 4.21 per cent, seemingly powered by non-Arab buyers who scooped up a net total of LE36.4 million in stocks despite making up just 15 per cent of the market.
Egyptians, by contrast, off-loaded LE37.8m and comprised 75 per cent of trade, although the buoyant interest of local individual buyers helped lower-cap stocks rise, boosting the broader EGX70 index by 0.58 per cent.
OCI, Egypt's largest listed stock, ticked up a further 2.44 per cent, still benefiting from news of recently inked construction deals in Brazil and across the Arab world.
Losses, when they came, were minor. Investment bank Pioneers Holding dipped 0.62 per cent, while Egyptian Company for Touristic Resorts slipped 0.34 per cent, both of which were seemingly affected by a renewed cycle of profit-taking.
"Telecoms, banking and real estate are the steadiest and most attractive sectors," said Hazem, although he advised caution for the latter sector, which already has several firms enmeshed in long-standing legal disputes over land.
"As interest builds in these and the path to elections continues, we might see the market return to something like normality."