For the sixth day in a row, big caps led Egypt's benchmark index to a four-week high on Wednesday, traders said. The North African country's main index EGX 30 gained 0.53 per cent, ending the day's trading at 6,226.18 points. The EGX 70, which measures 70 of the country's small and mid caps, added 0.66 per cent to 597.76 points. The Egyptian Exchange said it would change the composition of the benchmark index EGX 30, in the first major decision made by its new chairman, Khaled Serry Siam. Effective from August, the index will drop eight companies, including Nasr City Housing and add another eight, including private equity firm Citadel Capital, according to Reuters. Orascom Telecom, the largest Arab mobile operator by subscribers, slipped by 0.58 per cent to LE5.15 ($0.9) per share. Orascom Construction Industries rose by 0.74 per cent to LE235.57 per share. EFG-Hermes, Egypt's largest investment bank by market value, added 0.54 per cent, closing at LE27.85 per share. Volume hit LE736 million, accordig to the Egyptian Exchange. Mobinil posted a fall in second-quarter net profit to LE381 million ($66.8 million), adding few new subscribers, and said poor conditions were likely to continue, according to Reuters. The figure was down 29 per cent decline from the same period a year ago and up 6.7 percent on the first quarter of 2010. Mobinil, which leads the competitive Egyptian market by users, added just 26,000 subscriptions in the quarter, making a total of 26.148 million at the end of June, while its main rival, Vodafone's Egypt unit, closed the gap, adding 1.2 million to 25.79 million. Mobinil had earnings before interest, taxation, depreciation and amortisation (EBITDA) of LE1.099 billion on revenue of LE2.53 billion. Meanwhile, world stocks rose for the fifth day running as solid corporate earnings combined with easing fears about financial stability to boost investors appetite for riskier assets. The dollar, following recent risk patterns, was lower against a basket of major currencies. MSCI's all-country world index was up 0.4 per cent against the previous close. The Morgan Stanley Capital International (MSCI) index had touched a two and half month high during Tuesday's session.Earnings reports in Europe and Japan were behind much of the improved mood. "Earnings are coming through better than expected," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "Banks are better ... having underperformed for some time." The FTSEurofirst 300 was up half a percent for a 1.3 per cent year-to-date gain. Banks were leading the way. Earlier, Japan's Nikkei climbed 2.7 per cent for its highest close and biggest one-day gain in two weeks. Canon jumped 5.7 per cent after the world's No. 1 camera maker reported its strongest profit in seven quarters. The positive earnings sentiment trumped concerns about a slowing U.S. economy, epitomised by mixed economic data on Tuesday. Home prices rose in May, but labour-market worries took July consumer confidence to its lowest since February.
