Non-Arab buying pushed Egypt's main index EGX 30 to a five-month high on Wednesday, traders said. Adding 91 points, the North African country's benchmark index EGX 30 rose by 1.29 per cent, ending the day's trading at 7,142.38 points, the highest level since October 27, 2009. The EGX 70 index, which measures 70 of the country's small and mid caps, added 0.38 per cent to 745.26 points. Volume hit LE1.6 billion ($291 million), according to the Egyptian Exchange. Orascom Construction Industries, Egypt's largest builder by market value, inched up by 0.33 per cent, closing at LE275.59per share. Orascom Telecom, the largest Arab mobile operator by subscribers, jumped by 3.08 per cent to LE6.02 per share. Egypt's Housing and Development Bank will raise its dividend by 70 per cent to LE2.5 ($0.454), it said in an advertisement in Al-Ahram newspaper. The bank, which is raising LE930 million to finish housing projects and expand its retail operations, reported last week a net profit of 567 million pounds in 2009, up from 202 million in 2008, according to Reuters. HDB launched the capital raising last month to increase its capital to 1.6 billion pounds. Meanwhile, world stocks inched close to 18-month highs on signs of improving global growth but the euro remained on the ropes due to festering worries about Greece's debt problems. Oil steadied near 18-month highs on the brightening economic outlook while copper prices pulled back from 20-month peaks as traders worried the metal's recent rally may have been overdone. A recent run of strong US data from jobs to manufacturing and service activity have fanned hopes the world's biggest economy was stirring again while the World Bank sahrply raised its forecasts for economic growth in East Asia, led by China. Word stocks as measured by Morgan Stanley Capital International (MSCI) edged up 0.1 percent, near their highest since early October 2008 but gains were capped as European stocks slipped on caution before euro zone gross domestic product data due later in the session. "The rebound in the United States is well supported by a strong economic recovery, but it's more complicated in Europe and the recent gains remain fragile," said Christian Jimenez, fund manager and president of Diamant Bleu Gestion in Paris. The FTSEurofirst 300 index of top European shares shed 0.2 per cent after hitting an 18-month high for a second session in a row on Tuesday. The European benchmark is up 5.3 per cent so far this year. The euro took another knock from worries around Greece's fiscal problems. The common currency was soft at $1.3383, within sight of an 11-month trough of $1.3265 hit late in March. Euro-denominated gold prices rose to a record high 851.86 euros an ounce on strong physical demand spurred by fears over the outlook for the euro. "Renewed uncertainty over Greece is hurting an already jittery euro," said Stuart Bennett, senior FX strategist at Credit Agricole. "Even though the market is already heavily short of euro, there is still downside risk." Hourly charts show if the euro breaches $1.3342, which marks the 76.4 percent retracement level of its ascent from $1.3265 to $1.3591, it may force it to retest levels around $1.3260. The latest wave of selling was set off by reports that Greece wanted to amend an EU-IMF safety net deal set up late last month to help pay for its debts in an emergency. Although Greece denied the reports, the market paid no heed and continued to bet on Athens having troubles cutting its debt burden, even as its borrowing costs mount.
