Egypt's EGX 30 Index Rebounds 1.7% Led by Real-Estate Stock Gains
Egypt's EGX 30 Index has seen a significant 22 percent decline this year, currently valued at 1.5 times its book value. Despite this, the index has recently shown signs of recovery, climbing to its highest level since January, led by gains in real-estate stocks.
Real-estate stocks have been particularly attractive to realtors due to their discounted prices, according to Ashraf Akhnoukh, a senior equity sales trader at Commercial International Brokerage. Palm Hills Developments SAE (PHDC) gained for the first time in 10 trading days, surging 8.1 percent to 2.79 pounds, its highest level since March 2009. Six of October Development & Investment (OCDI) Co., a luxury developer, also jumped 8 percent, trimming its drop since trading resumed to 15 percent. The stock soared to 68.46 pounds. Talaat Moustafa Group (TMGH) also saw gains, rising 4.4 percent to 4.73 pounds. Meanwhile, Amer Group Holding (AMER) gained 4.4 percent, trimming its drop since the end of January to 16 percent.
The EGX 30 Index closed at 5,558.64 at the 2:30 pm close in Cairo, advancing 1.7 percent on the day. While the index has faced significant declines this year, recent gains in real-estate stocks suggest a potential turnaround in investor sentiment.
