CAIRO: Egypt s benchmark index gained over 1 percent on Monday, helped by strong local institutional buying and led by steady gains from heavyweight Orascom Construction (OCI). The market upshot was pared by a dip in Orascom Telecom, which ended down 4.64 percent at LE 21.15 ($3.79). Telecom Egypt was also heavily traded, ending 0.39 percent lower at LE 15.40. OCI gained 4.87 percent to LE 116.50, with traders seeing a lot of buying interest from local institutions. There is a strong local institutional flow entering the stock today, said Karim Hosny from Pharos Securities. Local investors accounted for more than 93 percent of all trade and were net buyers to the value of LE 47.1 million, stock exchange data showed. This is a good sign ... (because institutions) have a vision, they have an opportunity and they are seeing something behind what is going on and they want to take advantage of these cheap prices, said Mohamed Ashmawy from CIBC Brokerage. The benchmark CASE 30 index added 1.07 percent to 3,735.72 points, gaining for its third straight day. The index has shed almost 60 percent since a peak in May last year. The rival Hermes index gained 0.61 percent to 354.5 points and the broader CIBC index advanced 0.86 percent to 245.9 points. It is a positive sign the market is starting to see stability at a certain point, Ashmawy said. Traders said recent rises in cement prices helped producers. South Valley Cement gained 4.29 percent to LE 4.13 after it said it planned to buy a controlling stake in Golden Pyramids Plaza, the owner of City Stars mall. Cement prices had jumped on Sunday after an industrial strike by truck owners cut the immediate supply of building materials in many parts of Egypt. Among decliners, carpet maker Oriental Weavers fell 6.34 percent to LE 22 and investment bank EFG-Hermes shed 2.71 percent to LE 14.
