Egypt stocks buoyed by bellwether shares as OCI exits EGX30

Egypt\'s main EGX30 index gained 0.96 percent on Thursday, buoyed by bellwether shares as an acquisition deal removing Egypt\'s largest listed company, Orascom Construction Industries, from the index was completed. In a tender offer concluded on 28 July, Dutch parent company OCI NV acquired over 97 percent of OCI shares on the Egyptian Stock Exchange, with 31.31 percent of the offer size electing to convert their stocks into OCI NV shares, and 58.13 accepting a cash offer of LE255 per share. The cash offer was implemented on Thursday, thereby completing the transaction, which leaves 1.58 percent of OCI shares on the Egyptian Stock Exchange, thereby de-listing OCI from the main index of 30 companies. The deal meant that total turnover hit LE7.6 billion, though turnover of listed stocks was a meagre LE200 million. Egyptian and Arab investors were net-sellers, while other foreigners, who accounted for 68 percent of the market, were net-buyers for LE4.5 billion. Heavyweight shares in the EGX 30 buoyed the market. Commercial International Bank, which alone accounted for nearly 12 percent of listed stocks turnover, was up 3.14 percent, and Orascom Telecom, now EGX\'s largest listed company, rose 0.45 percent. Property shares were also ascending, with TMG Holding rising 0.42 percent, Palm Hills Development Company up 0.85 percent, and Six of October for Development and Investment (SODIC) up 1.11 percent. Leading investment bank Egyptian Financial Group-Hermes rose 0.23 percent. The broader EGX 70 index rose 0.22 percent.