New canal, new beginning? Egypt's stocks climb to six-year over unveiling of Suez mega project
Egyptian stocks rallied on Monday as details of the Suez Canal industrial hub mega project started to unfold, analysts said.
Benchmark index, EGX 30, climbed to its highest level in six years to record 8,918 points, a 1.31 percent rise from the previous session.
“Investors expect an economic boom in most sectors when the Suez Canal industrial hub project sees the light,” Eissa Fathy, vice head of the securities division at the Cairo Chamber of Commerce, told Ahram Online.
The Egyptian Armed Forces Engineering Authority and the Saudi Arabia branch of global Dar Al-Handassa were selected to undertake the development projects around the Suez Canal, reported Reuters on Sunday.
However, Mahmoud Rizk, communications officer of the project, told Ahram Online on Sunday that the Egyptian military has no links with the Suez Canal mega development project.
“The project is also expected to improve the macroeconomic indicators as it raises the canal’s revenues to $13 billion annually from $5 billion,” said Fathy.
“The market was also reacting to news reported by Bloomberg that EtisalatMisr mobile operator is expected to offer an IPO worth $500 million which would be the highest in five years,” said Fathy.
Daily stock turnover registered LE725.6 million ($101.5 million).
Foreigners were net buyers to the tune of LE90 million ($12.6 million) while Egyptians were net sellers to the tune of LE74.6 million ($10.4 million).
Market bellwether, Commercial International Bank (CIB), climbed 3.44 percent to LE43.25 ($6.05) per share.
All financial sector companies listed in the EGX30 index were on the rise.
Pioneers Holding rose 4.42 percent to LE14.25 ($1.99) per share.
Egyptian Financial Group-Hermes (EFG-Hermes) was up 1.73 percent to LE16.09 ($2.25) per share and Prime Holding increased by 3.49 percent to LE3.87 ($0.54) per share.
Arab Real Estate Investments Co. (ALICO) and Heliopolis Housing were the biggest gainers in the Real Estate sector rising 5.79 percent to LE1.28 ($0.18) per share and 2.54 percent to LE51.01 ($7.13) per share respectively.
Talaat Moustafa Group holding (TMG) was up 1.16 percent to LE9.62 ($1.35) per share, Six of October Development and Investment Company (SODIC) increased by 0.82 percent to LE39.19 ($5.48) per share and Palm Hills Development (PHD) company inched up 0.48 percent to LE4.13 ($0.58) per share.
Broader index, EGX 70, inched up 0.57 percent.