Egyptian index closes high on privatisation hopes

20 Sep, 2004

Egypt's benchmark share index again closed at its highest mark ever on Sunday with the government's revival of the country's privatisation programme fuelling buying in several partly state-owned companies.
Egyptian American Bank hit the upper 20 percent limit for movement in a single day over speculation about its planned merger with American Express Bank Egypt.
Exchange authorities suspended EAB shares before the close of trading after the day's average price hit 127.57 pounds ($20.48), 20 percent up from Thursday's close at 106.28. The shares had hit a high of 140.00 and last traded at 135.00.
A merger between EAB and American Express Bank Egypt, which already owns 40 percent of EAB, could lead to the sale of state-owned Bank of Alexandria's 32 percent stake in the bank, brokers said.
The Hermes index closed up 479.61 points or 2.39 percent at 20,521.43 points, an all-time high prompted by reform plans announced this month, including cuts in customs duties and perhaps tax as well as privatisation promises.
The broader CIBC index was up 0.98 points, or 0.98 percent, at 101.44 points.
Banks rose especially strongly, as throughout the week, because of the attention the new government of Prime Minister Ahmed Nazif has devoted to banking sector reform.

Read Comments