CAIRO: Egypt's main index inched up, led by El Sewedy Electric after the cable maker said 2010 net income jumped 29.5 percent. Sewedy gained 5.9 percent. The stock had declined 27 percent since the political unrest that led to Hosni Mubarak's resignation broke out on Jan. 25. "All stocks, including Sewedy, are trading quite cheaply," said Hashem Ghoneim of Pyramids Capital. "The events in Egypt have not had a major effect on the company. A lot of its business is outside Egypt." El Sewedy Electric reported Wednesday a 29 percent increase in net income for 2010. El Sewedy had last April forecast a 25 percent gain in 2010 net earnings as it saw loss-making activities recovering and a pick-up in sales. Net income of the biggest Arab cable maker rose to LE 816.6 million ($137 million) from LE 630.7 million in 2009, the exchange said. The company in March slashed its forecast for net profit growth in the current year to 1 percent from 20 percent due to political turmoil in Egypt and Libya. The EGX30 advanced 0.1 percent at to 5,478 points. Ghoneim said he expects shares to trade sideways for the rest of the week as investors consolidate positions after the market's strong performance last week. The market has settled down after a bounce soon after it reopened on March 23, Youssef Kamal at Naeem Brokerage said. "The swings are over, so the market has shifted to investors who buy for long-term value and not to take advantage of volatility," Kamal said. He added a decision to remove exceptional circuit breakers imposed after the unrest may help increase volumes on the market. The exchange's chairman, Mohamed Abdel Salam, said on Wednesday the regulator and the exchange would meet on Thursday to review the circuit breakers, which close the market if the broad index EGX100 rises by more than 5 percent. Orascom Construction Industries advanced 2.5 percent. The company goes ex-dividend on Thursday for a $1 per share cash dividend. Among decliners were Palm Hills Development, which fell 4.5 percent, and Commercial International Bank, which lost 1.3 percent.
