Egypt shares rise 0.6%, hit 14-month high

Egypt's stock exchange slowed its climb during Monday's trading, but closed in the green as the main index EGX30 rose by 0.6 per cent, reaching 5,460 points, its highest level in 14 months. Profit taking led both foreign and Arab investors to finish the session as net-sellers at LE4.1 million and LE3.6 million respectively, which lessened the gains of indices compared to Sunday's session. Egyptians were net-buyers at LE7.7 million. The broader index EGX70 rose by 0.5 per cent. The highest market-cap, Orascom Construction Industries (OCI), declined 0.1 per cent, whereas Orascom Telecom, Media and Technology (OTMT) slipped 1.7 per cent. Egypt’s biggest steel producer Ezz Steel declined 0.3 per cent. National Societe Generale Bank (NSGB) still leads the market, surging 10 per cent as investors await Qatar's acquisition of the majority stake in the bank. On Sunday, Qatar National Bank (QNB), the state lender seeking to boost its regional presence through acquisitions, hired JPMorgan Chase to advise them on a planned buy of Societe Generale's Egyptian arm, three sources said. SocGen is in early talks with QNB to sell its 77.2 per cent stake in NSGB - the Egyptian lender which has a market value of around $2.3 billion - as the French bank seeks to shore up its capital through divestments. Qatar's echo also reached EFG-Hermes, which was up 0.6 per cent, recording the highest daily turnover worth LE63.6 million as the group approved distributing profits worth LE4.4 per share, after approving a tie-up between EFG-Hermes and the Qatari group. Under the terms of the deal, Qinvest would control 60 per cent of the new bank, which will be called EFG Hermes Qatar, and would provide $250 million to increase its capital. Commercial International Bank (CIB) and Orascom Telecom (OT) rose by 0.2 per cent each. Property shares including the Talaat Mostafa Group (TMG), Palm Hills Development (PHD) and Six of October Development and Investment (SODIC) continued to rise, with gains of 1.2 per cent, 3.4 per cent and 4.3 per cent respectively. (ahram)