Tags: AME | ARABWRAP | BLD | BNALL | BNCOPY | BNJERUSAL | BNK

Egypt Stocks Advance on Bets Drop Overdone

Sunday, 03 Apr 2011 05:22 PM

Egypt stocks climbed to the highest level in almost a week, led by Six of October Development & Investment Co., on investor speculation declines in real-estate shares last month were overdone given growth prospects.

Six of October, a luxury developer, jumped 7.2 percent, trimming the drop since trading resumed March 23 after an almost two-month suspension to 16 percent. Palm Hills Developments SAE, a Cairo-based property company, gained for the first time in 10 trading days. Egypt’s EGX 30 Index rose 1.5 percent to 5,545.55 at 1:26 p.m. in Cairo, the highest intraday level since March 28. The index has lost 1.8 percent since trading resumed. Dubai’s measures fell, and Israel’s benchmark index advanced 0.6 percent.

“Real-estate stocks are attractive, as they have become extremely discounted," said Ashraf Akhnoukh, senior equity sales trader at Cairo-based Commercial International Brokerage. ‘‘The sector was the worst performer since the market resumed trading.’’

The EGX 30’s 22 percent plunge this year has left the index valued at 1.5 times net assets, or book value, compared with about 1.9 times at the end of 2010, data compiled by Bloomberg show. Palm Hills has tumbled 44 percent since trading resumed and Talaat Moustafa Group Holding, Egypt’s biggest publicly traded real-estate developer, has slumped 28 percent. Neither the EGX 30 nor the broader EGX 100 have subindexes, according to data on Bloomberg.

Trading in Egypt was halted since the end of January until last month amid protests that ousted former president Hosni Mubarak in February.

’Attractive Risk’

Amer Group Holding, which develops hotels, malls and restaurants, gained 5.1 percent today to 1.45 pounds, trimming the drop since the end of January to 22 percent. Beltone Financial initiated the shares with an ‘‘add” recommendation and a price estimate of 2.8 pounds. "The stock has been over- penalized," Beltone analysts Harshjit Oza and Ahmed Khalil wrote in a note March 31. "The stock offers an attractive risk reward at the current price."

Six of October soared to 68 pounds. Palm Hills surged 6.6 percent, the most since Nov. 7, to 2.75 pounds and Talaat rose 3.8 percent to 4.7 pounds.

In the Persian Gulf, the Bloomberg GCC 200 Index, Abu Dhabi’s ADX General Index and Qatar’s QE Index gained 0.1 percent. Oman’s MSM30 Index rallied 1 percent, while Bahrain’s BB All Share Index fell 0.5 percent and Kuwait’s measure dropped 0.4 percent. Dubai’s DFM General Index retreated 0.1 percent after earlier rising as much as 1.3 percent. Saudi Arabia’s Tadawul All Share Index was little changed.

In Israel, the benchmark Mimshal Shiklit government bond due January 2020 was little changed, leaving the yield on the 5 percent notes unchanged at 5.26 percent.

© Copyright 2017 Bloomberg News. All rights reserved.

1Like our page
2Share
StreetTalk
Egypt stocks climbed to the highest level in almost a week, led by Six of October Development Investment Co., on investor speculation declines in real-estate shares last month were overdone given growth prospects.Six of October, a luxury developer, jumped 7.2 percent,...
AME,ARABWRAP,BLD,BNALL,BNCOPY,BNJERUSAL,BNK,BNSTAFF,BNTEAMS,BNTELAVIV,BON,BUSINESS,COS,CSM,CST,DUBAI,DUX,EGYPT,EM,EMCURZ1,EMCURZ2,EMTOP,EMTOPZ1,EMTOPZ2,EUBNX,EUROEM,EXTRTOP,FEAS,FIN,FINNEWS,GOWEB,GULF,GULFCURZ1,GULFCURZ2,GULFTOP,GULFTOPZ1,GULFTOPZ2,GULFWRAP,ISLAMFIN,ISRAEL,KUWAIT,LEI,LST,MARKETS,MEAST,MENA,MIDEAST,MKTMISC,MKTTOP,MSCIAFRICA,MSCIWORLD,ONWEB,OPN,ORIGINAL,READ,REL,SAUDI,STFILT241,STFILT266,STFILT268,STK,STKCURZ1,STKCURZ6,STKTOP,STKTOPZ1,STKTOPZ6,TOP,TOPBIZMKT,UAE,UPDATE,WWCURZ2,WWTOP,WWTOPBIZ,WWTOPSTG,WWTOPZ2
443
2011-22-03
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved