Motivated by non-Arab buying, Egypt's main index EGX 30 gained 140 points on Tuesday, ending a three-day losing streak, traders said. Orascom Telecom, the largest Arab mobile operator by subscribers, jumped by 5.3 per cent to LE7.57 ($1.4) per share. The North African country's benchmark index EGX 30 rose by 1.89 per cent, ending the day's trading at 7,531.18 points. But the EGX 70 index, which measures 70 of the country's small and mid caps, shed 0.17 per cent to 748.44 points. Volume hit a four-month high exceeding LE3 billion, according to the Egyptian Exchange. Orascom Construction Industries, Egypt's largest builder by market value, inched up by 1.6 per cent, closing at LE277.53 per share. El Sewedy Cables approved on Monday a dividend of three bonus shares for every 10 held, a move that will boost capital by 29.5 per cent, according to Reuters. In May last year, the firm paid an LE1 cash dividend. Net profit at Sewedy, the largest Arab cable maker by market value, declined 23 per cent in 2009 to LE633.6 million pounds, hit by lower cable prices, reduced export sales and higher costs. Sewedy's executives said earlier this month 2010 net profit would climb 25 per cent to around 800 million pounds as loss-making activities recover and sales pick up. The firm, which has production plants in Egypt, Ethiopia, Nigeria, Yemen, Saudi Arabia, Syria, Algeria, Ghana, Zambia, Qatar and Libya, has around 10 projects that have yet to produce at capacity. Meanwhile, European shares rose, buoyed by corporate earnings optimism, while concerns over Greece's parlous fiscal situation weighed on the euro. Sentiment was lifted by Citigroup reporting its best results since 2007 on Monday, while German carmaker Daimler doubled its profit outlook, helping to lift European equities. "Q1 earnings are coming through on balance better than expected with strong results from Daimler in Europe and Citigroup (C.N), and there is a bit of relief on Goldman Sachs (GS.N)," said Bernard McAlinden, an investment strategist at NCB Stockbrokers. The FTSEurofirst 300 index of major European shares rose 0.7 per cent, while the Morgan Stanley Capital International (MSCI) world equity index gained 0.3 per cent. Emerging stocks rose 0.9 per cent. Persistent concerns about Greece's fiscal health weighed on the euro, which dipped 0.1 per cent against the dollar. The Wall Street Journal reported that European Central Bank Governing Council member Axel Weber said Greece may require assistance of up to 80 billion euros. Greece has yet to ask for activation of the EU/IMF aid safety net agreed earlier this month, estimated at 45 billion euros in the first year. "No one believe that initial amount would be enough to cover Greece's funding needs," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ. Against a basket of currencies, the dollar was down 0.1 per cent, with gains against the euro offset by falls against risk-sensitive currencies such as sterling and the Australian dollar. Oil prices rebounded from three-week lows as jet fuel demand increased, with European planes taking back to the skies after a threat from ash spewed by a volcano in Iceland receded. US crude oil rose 74 cents to $82.18 per barrel, having fallen almost five per cent in the previous two trading sessions. Flights from large parts of Europe were set to resume under a deal agreed by the European Union to free up airspace closed after the volcano erupted last week. The disruption cut global jet fuel use by about 20 per cent in the past few days.
