OCI and EFG-Hermes push bourse up

SHARES of Orascom Construction industries (OCI) posted their sharpest single-day gain in almost 20 months yesterday, powering Egypt’s main index to its third straight session of gains, according to Reuters.
Shares of EFG-Hermes notched their sharpest one-day gain in almost 21 months as investors anticipated the investment bank would profit from upcoming initial public offerings.
OCI, up about 15 per cent in the past three sessions, surged 7.3 per cent to LE479.89($88.87).
“Brokerage reports recommending the stock and a lower share price after the company paid an IE300 per share dividend in March are boosting demand, said Karim Hosny, account officer at Pharos Securities.
“The brokerage reports and the lower share price are increasing investor appetite, “he said.
HSBC raised the company’s price target in April to LE592 because of a robust outlook for the fertilizer industry.
Shares of EFG-Hermes, down nearly 19 per cent in the year to Sunday’s close, jumped 7.4 per cent to LE 58.40.
“People are looking at the two IPOs they have and also at the graph,” said Mohamed Tawfiq, a trader at delta Rasmala Securities. “The stock has been going down o some people are buying on technical.”
EFG-Hermes is a global coordinator and book runner for Egyptian developer Palm Hills’ IPo next month and for the IPO of Egyptian oil and marine support company maridive & Oil Service, which is expected to begin trading in May.

The benchmark CASE 30 index, which has gained 11 per cent this year to Sunday’s close, rose 1.35 per cent to 11.913.41 points.
The Hermes index climbed 0.68 per cent to 103.006.40 points and the broader CIBC index retreated 1.75 per cent to 561.40 points.