Blue-chips lift key Egypt index to all-time high

Egypt's benchmark Hermes stock index raced to an all-time closing high on Sunday, driven by a sharp rise in blue-chip shares including mobile phone operator Mobinil, traders said.

The index ended 1.9 percent higher at 74,983.76 points. The well watched Case 30 index also flirted with an all-time closing high, gaining 2.3 percent to 8,470.44 points.

"There is a lot of momentum on blue-chips," said Teymour el-Derini at Beltone Financial. "Foreigners are buying the safe stocks instead of looking to new opportunities."

Mobinil, the most heavily traded share by turnover, rose 2.9 percent to 196.03, with investors buying the stock to collect a 6.12 pound per share dividend, traders said.

Market mainstay Orascom Telecom (OT) also rose 6.3 percent to 73.90 pounds after the company announced a share buyback plan starting September 13.

Derini said remarks by OT Chairman Naguib Sawiris earlier this month that the company could team up with France's Iliad for a fourth mobile license in France had a positive impact on the shares.

Another blue-chip stock, Commercial International Bank jumped 4.3 percent to 74 pounds. Ezz Steel rose 2.8 percent to 52.75 pounds after financial daily Al Alam Al Youm said the company had submitted a bid to build four steel plants in Egypt.

Traders said the market was poised to continue its rise despite the shortened trading session in the Muslim holy month of Ramadan, which started on Thursday.

"We could see some profit-taking on Tuesday but the major trend is upwards," Derini said.