CAIRO, (Reuters) – Egyptian stock markets rose more than one percent on Thursday, helped by gains in regional markets and Orascom Construction (OCI) in a low volume session, traders said.
The benchmark CASE 30 index .CASE30 added 1.59 percent to 3,585.82 points and the rival Hermes index gained 1.2 percent to 339.68 points. The broader CIBC index advanced 1.84 percent to 238.1 points.
OCI gained 4.63 percent to 113.40 Egyptian pounds ($20.27), extending recent volatility. The stock has moved more than 2 percent in each of the last six trading sessions, advancing four times and declining twice.
“There is a conflict between foreign investors and locals causing volatility,” said Wafik Dawood from Naeem Brokerage, adding that London-listed shares add to volatility due to the potential for short-selling.
Adding to positive sentiment, the Dubai bourse posted its biggest one-day gain in three months after the exchange secured a refinancing loan.
“Usually when there is optimism in the Gulf and in Saudi you see the flow of Gulf money into the market here,” Dawood said.
Non-Egyptian Arabs were the only net buyers, with local investors net sellers by a small margin, stock exchange data showed.
Orascom Telecom, the largest Arab mobile operator by subscribers, gained 0.65 percent to 20 pounds.
Dawood said OT has been minimised as a bellwether stock in recent months, with investors instead eyeing Mobinil, which gained 0.97 percent to 140 pounds, and fixed-line monopoly Telecom Egypt, which ended down 0.91 percent at 14.14 pounds.
“Most people are not very optimistic about OT’s performance this year. By default it does not become an indicator to the market,” he said.