Egypt Stocks Rise Before Protests as Cheap Buys Lure Investors Egyptian shares headed for the highest close in almost three weeks on investor bets the steepest monthly drop since November was overdone even as the government faces nationwide protests. Commercial International Bank Egypt SAE, the nation’s biggest publicly traded lender, led gains with a 3.8 percent jump and Orascom Telecom Holding rose the most in almost two weeks. The EGX 30 Index advanced 0.7 percent to 4,717.88 at 12:31 p.m. in Cairo, set for the strongest close since June 11 and trimming this month’s retreat to 13 percent. About 19 million shares have traded compared with a one-year daily average of almost 124 million. This month’s drop left Egypt’s index at a ratio of 8.5 times estimated earnings compared with 10.4 times for the MSCI Emerging Markets Index. Shares fell in the run up to protests today against Islamist President Mohamed Mursi, whose opponents say has monopolized power and failed to revive the economy. The army deployed last week amid clashes between pro-and anti-government crowds that killed eight and injured hundreds. “Current prices already reflect the discounting of political risk, which is limiting losses and helping investors find selective opportunities,” Mohsen Adel, fund manager at Cairo-based Pioneers Holding, said by phone. “Investor appetite will remain low until there’s more clarity on whether the protests today remain peaceful or take a violent turn.” Egypt’s stock exchange will be closed tomorrow for a holiday. Commercial International Bank gained to 29.85 Egyptian pounds, set for the biggest advance since June 11. Orascom Telecom climbed 4.3 percent to 3.92 pounds.
Posted on: Sun, 30 Jun 2013 11:35:48 +0000