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Resolution of OCI tax dispute fires Egypt market Settlement of OCI's tax dispute with govt – rather than Tuesday cabinet reshuffle, say experts – drives EGX30 up 1.8 percent in week's first trade session
Egyptian stocks performed well in the week's first trade session, bolstered by the resolution of a tax dispute between Orascom Construction Industries (OCI) – Egypt's largest listed firm in terms of capital – and the government. The main EGX30 index rose by 1.8 percent to reach 5,372 points in a session that saw the highest daily turnover – some LE534.7 million – within the last three weeks. Last week, OCI agreed to pay LE7.1 billion (roughly $1 billion) to the government, which had accused it of evading $2 billion in taxes on the 2007 sale of its subsidiary, Orascom Building Materials Holding (OBMH), to French cement giant Lafarge. Eissa Fathi, vice head of securities at the Cairo Chamber of Commerce, told Ahram Online that investors had been heartened by the presidency's decision to send a representative to welcome OCI owner Naguib Sawiris upon the latter's recent return to the country. "I don't think Tuesday's cabinet reshuffle had an impact on the market today," Fathi asserted. On Tuesday, Egyptian Prime Minister Hisham Qandil announced the replacement of nine government ministers. The broader EGX70 index, meanwhile, rose 0.5 percent for the day, even though both Egyptian and foreign investors were net sellers on Tuesday at LE12 million and LE9 million respectively. "The market witnessed profit taking by both foreigners and Egyptians after a number of shares ended the week up on Thursday," said Fathi. Market blue chips rose for the most part, led by OCI and Commercial International Bank, which increased in value by 1 and 4 percent respectively. Orascom Telecom was among the few bellwether stocks to lose value, slipping by 0.6 percent on Tuesday. Property stocks also recorded gains, topped by Palm Hills, Talaat Mostafa Group and SODIC, which surged by 3.6, 2.7 and 2 percent respectively. http://english.ahram.org.eg/News/70910.aspx
