Egyptian stocks recovered on Sunday, pulled up by foreign demand for Orascom Construction Industries (OCI) and investment bank EFG-Hermes, brokers said. The benchmark CASE 30 index ended the day 1.24 percent higher at 9,498.51 points and the broader CIBC index was 2.46 percent up at 475.74 points. Mohamed Kotb of Jazira Asset Management said the rebound came from the performance on Friday of OCI and EFG-Hermes in the GDR market, which is largely driven by foreign buying. The two stocks have a heavy weighting in the Egyptian indexes. “It is a normal rebound with no specific reason. Buying appetite is coming to both stocks,” he added. OCI gained 1.76 percent to last trade at 396.02 pounds ($74.58) and EFG-Hermes rose 1.27 percent to 47.85 pounds. Both were among the eight most traded stocks. “Some confidence is coming back to the market. The market rebounded in the States last week but we hadn't seen any reaction here,” added Hashem Ghoneim of El Nour Securities. Yasser Hassanein of Dynamic Securities said Sunday was the best day for trading in the last two months. Average P/E ratios for the market now stand at between 10 and 12, he added. “These are very attractive prices.” The well-watched Hermes index mirrored the CASE 30, gaining 1.27 percent to 822.47 points.
