Egypt share indexes hit fresh highs

Two of Egypt's main share indexes hit fresh closing highs on Wednesday for the second straight session led by Ezz Steel, brokers said.

Shares in Ezz Steel jumped 5.4%, its highest single-day gain since January 2007, to last trade at 69.99 Egyptian pounds ($12.70) after the company announced a rise in its steel selling prices by 7%, said Eissa Fathi Eissa of the Strategic Company for Securities.

"The company said the move is driven by international price increases but many people believe it will generate more profits for the company," Eissa added.

A shareholders meeting of Ezz Steel approved on Monday a dividend of 1 pound per share for the first nine months of 2007 and the issuing of bonds worth 1.1 billion pounds.

Eissa said this could mean that "they are preparing to expand or just switching to a less expensive debt tool, a positive thing either way".

Brokers said the bullish mood dominated nearly all the market as most big and small caps closed in the green.

Telecom Egypt, Egypt's fixed-line monopoly, gained 2.8% to 21.68 pounds after HC updated its recommendation on the stock to "buy" with a target price of 26.50 pounds.

The shipping and containers sector continued its upward trend from the previous session as United Arab Shipping surged 10.1% to 16.30 pounds, while Canal Shipping rose 1.4% to 44.10 pounds.

Overall, the benchmark Case 30 index gained 1.3% to 10,690.14 points, while the well watched Hermes index also added 1.6% to 94,213.85 points, both at their highest ever closing levels.

The broader CIBC-100 index climbed 2.7% to 415.97 points.

Shares in investment bank EFG-Hermes bucked the market losing 0.1% to 65.88 pounds in profit taking, brokers said. (Reuters)

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