Banks led Egyptian shares to close higher on Sunday after a strengthening Egyptian pound on the black market raised expectations the official market may attract more dollars and boost business in banks, traders said.
They also said Orascom Construction Industries (OCI) lifted stocks ahead of the announcement of its full-year results, expected to be very strong. The share rose 1.63 Egyptian pounds ($0.26), or 1.8 percent, to last trade at 92.02 pounds and officially close at 92.09 pounds.
OCI told Reuters in October it expected its 2003 net profit to jump 37 percent to 500 million pounds.
The benchmark Hermes index rose 175.80 points, or 1.3 percent, to 13,451.65 points. The broader CIBC index rose 0.42 points, or 0.5 percent, to 83.43 points.
The pound has strengthened in recent weeks on the parallel market, with market sources citing rates of between 6.35 and 6.50 pounds to the dollar on Sunday, approaching the official rate quoted in banks at around 6.20 pounds.
Some traders said banks had on Sunday particularly benefited from the pound's strengthening against the dollar.
Egyptian American Bank last traded up 0.81 pounds, or two percent, at 41.60 pounds and officially closed at 42.19.
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