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Egypt stock indexes at all-time high, SODIC leads
Real estate news By Reuters South Africa
Wed 24 Oct 2007, 12:20 GMT
Egypt's benchmark Case 30 stock index hit an all-time high on Wednesday, led by real estate developer SODIC which raced to a 20-month high after a bullish stock recommendation from HSBC. Shares in the Sixth of October Investment and Development (SODIC) rose 6.7 percent to last trade at 202.25 Egyptian pounds ($36.64) after HSBC initiated its coverage of the company with an "overweight" recommendation and a price target of 280 pounds. "HSBC is a reliable source of valuation so the report gave the stock a push," Mohamed Kotb of Jazira Asset Management said. "Also there was a lot of optimism about SODIC. The stock had risen from 160 pounds to 190 pounds even before the report."
Regional mobile operator and market mainstay Orascom Telecom also rose for the second straight session, climbing up 1.7 percent to 78.20 pounds. Orascom Construction Industries surged 1.7 percent to 470.25 pounds. The gains helped the Case 30 index to rise 1 percent to 9,060.37 points. The well watched Hermes index also rose 1 percent to hit an all-time high to 80,145.29 points. Mohamed Ashmawy of CIBC brokerage said the market was set to continue its gains in the short-term backed by foreign investors and Arab Gulf buyers.
Bucking the trend was Egypt Kuwait Holding which shed 1.2 percent to $2.56 on profit-taking. The drop reversed a bullish run that was based on market speculation the firm would win a license to build a new cement factory in Egypt. The government has shortlisted 24 companies to bid for 14 licenses to build the factories. An auction for the licenses will be held on October 28. Suez Cement rose 6.1 percent to 71.95 pounds and South Valley Cement last traded 2.8 percent up at 17.02 pounds. Misr Beni Suef shed 1.2 percent to 138.67 pounds and National Cement fell 0.8 percent to 40.27 pounds.
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