Egypt stocks hit 3 week high on Monday

EGX30 continues strong gains since beginning of 2013, rising 0.97 per cent on Monday Egypt's stock exchange closed Monday's session in the green, reaching a three-week high and continuing a week-long winning streak. The main EGX30 index grew 0.97 per cent to close at 5,749 points, its highest close since 10 January. The index has gained 5.24 per cent since the beginning of 2013. Trading volume reached a healthy LE511 million ($78.5 million), with 108 shares gaining and 32 dropping. The market has showed a fluctuating performance over the past few weeks due to the unstable political scene. Last Friday, protesters attacked the presidential palace with Molotov cocktails as the general feeling of dissatisfaction with President Mohamed Morsi's leadership became more pronounced. Shares in Orascom Construction Industries (OCI) edged up 0.21 per cent. Egyptian construction and fertiliser firm OCI NV, newly listed in the Netherlands, said 93.3 per cent of global depository receipt (GDR) holders in parent firm OCI had agreed to swap them for OCI NV shares. OCI will delist after the remaining shareholders accept an offer to exchange their shares to those of OCI NV or sell them for the offered price of LE280 in cash. Investors are moving to other liquid stocks that will lead the market after OCI - the largest by market value - delists. "Egypt is losing OCI - it's not a good point for the market," said Sebastien Henin, portfolio manager at The National Investor. "Unfortunately there are no IPOs in the pipeline. Liquidity will decrease a little bit." Investors will look to other stocks such as Orascom Telecom, Telecom Egypt and CBI, he added. Palm Hills Development (PHD), the market's second largest real estate firm, saw LE56 million in turnover and gained 1.2 per cent to close at LE2.51 per share. The company share price struggled following the uprising in 2011 as its extensive land bank was legally contested. Similarly, Talaat Mostafa Group, another real estate developer also gained 1.15 per cent. Non-Arab foreign investors were the main driver of today's surge, net-buying at LE33 million. They made up 17 per cent of the day's total trade. Market leaders, Commercial International Bank (CIB), EFG-Hermes and Orascom Telecom Holding gained 1.14, 1.44 and 2.2 per cent, respectively. The broader EGX70 index, which includes smaller shares, gained 0.58 per cent to sit at 481 points. From Ahramonline