[2008-01-30]  Egypt bourse climbs on foreign buying, CIB leads
Egyptian shares rose on Tuesday on foreign buying with Commercial International Bank (CIB) leading most big caps stocks up, brokers said.
Shares in CIB, Egypt's largest listed bank by market value, gained 2.3 percent to last trade at 90 Egyptian pounds ($16.16).
"We saw strong buying on the stock today from foreign institutions," said Mohamed Radwan of Pharos Securities.
Brokers said CIB was also boosted by its global depository receipts (GDRs) in London, which were 4.2 percent up at $16.2 by 1251 GMT.
Egypt's benchmark CASE 30 index and the Hermes index gained 1 percent each to close at 10,111.33 points and 89,613.22 points.
The broader CIBC index inched 0.3 percent down to 412.32 points.
Egyptian indexes have zigzagged up and down in the previous five sessions, reflecting "volatility in international markets, especially in the U.S. and Japan," Radwan said.
"There is still a lack of direction in the market," he added.
Expectations of another round of aggressive U.S. interest rate cuts later this week boosted stocks and sent gold to historic highs on Tuesday while they kept the dollar near a two-week low.
The Federal Reserve, which cut benchmark U.S. interest rates by 75 basis points in emergency action last week to 3.5 percent, is widely expected to lower the cost of borrowing further on Wednesday, possibly by another 50 basis points.
Telecom Egypt, which was the second most heavily traded stock by turnover, rose 1.9 percent to last trade at 20.60 pounds, while Mobinil jumped 4.4 percent to 220 pounds.
Ezz Steel was 1.9 percent higher at 63.65 pounds after HC Securities updated its coverage on the stock with a "strong buy" rating and a price target of 98.50 pounds.
Orascom Construction Industries (OCI), extended losses and was 0.1 percent lower at 571.61 pounds after its GDRs in London fell 0.6 percent to $207.75 by 1313 GMT, brokers said.
Source: © Guardian News and Media Limited 2008