Spearheaded by a rise in EFG-Hermes and Orascom Telecom shares, Egypt's main index EGX 30 gained more than 107 points on Wednesday, traders said. The North African country's benchmark index EGX 30 jumped by 1.61 per cent, ending the day's trading at 6,783.38 points. The EGX 70 index, which measures 70 of the country's small and mid caps, added 0.9 per cent to 731.47 points. Volume hit LE905 million ($165 million), according to the Egyptian Exchange. Arab and non-Arab investors made net purchases of LE6.86 million and LE30.64 million respectively. EFG-Hermes Holding, the biggest publicly traded Arab investment bank, will open an office in Damascus with a local partner and start a Syrian private equity fund at the same time, Bloomberg reported. EFG-Hermes has a 70 per cent stake in EFG-Hermes Syria, while Syrian businessman Firas Tlass has a 30 per cent stake, the Cairo-based company said. EFG-Hermes leapt by 4.21 per cent, closing at LE30.18 per share. Orascom Telecom, the largest Arab mobile operator by subscribers, jumped by 3.25 per cent to LE6.36 per share. Egypt's GB Auto plans to raise LE1 billion ($182 million) by selling five-year bonds, lead manager Beltone Financial said. The fixed-rate callable bonds will pay a quarterly rate of return of 12 percent, said Tareq Elalaily, head of fixed-income at Beltone, referring to the term-sheet, Bloomberg reported. Investors will start getting the principal amount after two years in equal quarterly installments over the next three years, according to the document. The company plans to use the proceeds to fund expansion in the Middle East and repay a 150 million Egyptian-pound bridge loan. Meanwhile, the euro rose after the Greek government endorsed a 4.8 billion euro austerity package, but markets were wary over whether it would be enough for Athens to win financial support from its European partners. The euro rose roughly half a US cent after a government source told Reuters the Greek cabinet decided on the plan, which included a rise in value added tax to 21 per cent and a cut in public sector salary bonuses by 30 per cent.Market reaction was limited after an official announcement disclosed more details of the plan.
