CAIRO, Nov 18 (Reuters) - Egypt's two main indexes hit new
life highs on Sunday as investors returned to buying big caps
after the private placement in the real estate developer Talaat
Mustafa was 17 times oversubscribed, brokers said.
"Foreign investors acquired most of the shares in the
private placement, leaving local institutions with high
liquidity that returned back today to the market," Essam
Khalifa, general manager of the National Fund Management
Company, said.
The group, which is also offering shares in a separate
initial public offering that ends on Tuesday, said on Friday
that its private placement of 330 million shares had been 17
times oversubscribed.
The shares were sold for 3.83 billion Egyptian pounds
($693.84 million), but investors offered 65 billion pounds.
Egypt's benchmark Case 30 index <.CASE30> gained 2 percent
to 9,599.49 points, while the well-watched Hermes index <.HRMS>
gained 1.8 percent to 84,485.44 points, both record highs. The
broader CIBC index <.CIBC> rose 0.9 percent to 394.06 points.
"The enthusiasm for the TMG private placement also gave a
positive impression on the market as a whole," said Eissa Fathy
Eissa, managing director of the Strategic Company for
Securitites.
Brokers said the leaps in quarterly profits of big caps also
inspired investors. Shares in El Sewedy Cables <SWDY.CA> gained
4.7 percent to 119 pounds, while Egypt's biggest investment bank
EFG-Hermes <HRHO.CA><HRHOq.L> rose 3.6 percent to 61.10 pounds.
The two companies had announced 9-month results last week
that showed surging profits.
Real estate stocks were also in the green with Medinet Nasr
Housing <MNHD.CA> gaining 5.7 percent to 59.51 pounds. Sixth of
October Development and Investment <OCDI.CA> was 2.2 percent up
to last trade at 225 pounds.
($1 = 5.52 Egyptian pounds)
(Reporting by Wael Gamal)
(([email protected] ; +20 2 2578 3290/1))
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