[2008-03-07]  Foreign buying boosts Egypt bourse, Raya surges
Egyptian shares climbed in heavy trading on Wednesday as the market attracted more foreign money targeting big caps and the telecom stock Raya Technology and Communication, brokers said.
"We saw fresh investments from U.S. banks and Japanese funds entering the market for the first time," said Mohamed Fouad, managing director of Global Securities.
Foreigners were the only net buyers on the day by 633.57 million Egyptian pounds ($115.6 million), or 23.7 percent of the market's total buying value, according to stock exchange data.
Shares of Raya jumped 6.3 percent to last trade at 13.95 pounds after surging to 14.28 pounds during the session.
"The stock is back to action as more people came in looking for shares with good value," Fouad said. Market turnover exceeded 2.6 billion pounds on Wednesday.
"Raya has good fundamentals and belongs to the telecom sector, a favourite of foreigners," he added.
Orascom Construction Industries, extended gains to a second session, rising 0.8 percent to 679.90 pounds, while Commercial International Bank gained 1.8 percent to 96 pounds per share.
Shares of Egyptian Company for Electrical Cables rose 6.2 percent to 2.58 pounds as small investors rushed to buy the stock, brokers said.
The company said in a statement to the stock exchange on Tuesday it had settled its debt to the Bank of Alexandria in line with its financial restructuring plan. It did not give details on the value of debt.
Overall the benchmark CASE 30 index ended 0.7 percent higher at 11,401.35 points, after touching a life high of 11,410.54 points during the session.
The well-watched Hermes index rose 1.1 percent to 99,947.78 points, also a record closing, while the broader CIBC index ended the session at a life high of 531.29 points, 4.1 percent up from Tuesday's closing.
But shares of Orascom Telecom bucked the market trend and fell 0.7 percent to last trade at 79.32 pounds.
Italian judicial sources said on Thursday they were investigating 11 people for corruption in the sale of Italy's No. 3 telecoms company Wind, including its Egyptian owner and the chief executive of Italian utility Enel.
Enel sold Wind to Egyptian businessman Naguib Sawiris, OT's chairman, in a deal completed in 2006 and worth more than 12 billion euros ($18 billion) including debt.
Source: © Guardian News and Media Limited 2008