Egypt's TMG jumps on bargain hunting, boosting indexes

CAIRO, Sept 3 (Reuters) - Shares of Talaat Moustafa Group (TMGH.CA) posted their sharpest jump in two weeks on Wednesday, lifting Egypt's benchmark index .CASE30 as investors searched for bargains after its stock tumbled.

Shares of Egypt's largest real estate developer by market value had plunged 16 percent on Tuesday, the day Egypt's prosecutor charged the company's former chairman Hesham Talaat Moustafa in a murder case. The company said on Tuesday Hesham's brother Tarek Talaat Moustafa had taken over as chairman.

The stock gained 4.48 percent to 5.60 Egyptian pounds ($1.02) on Wednesday, ending two sessions of declines. It had fallen nearly 50 percent this year to Tuesday's close.

The shares helped pull the CASE 30 index up 1.96 percent to 8,401.20 points.

"The worst has already happened," said Karim Hosny, trader at Pharos Securities. "It's an asset-rich company and it's cheaper than other real estate."

Shares of Talaat Moustafa, the third-worst performer this year on the CASE 30 index, are trading at 4.53 times 2007 earnings compared to a sector average of 18.07, according to Reuters data.

Shares of Orascom Construction Industries (OCIC.CA) (OCICq.L), Egypt's largest building by market value, jumped 4.43 percent to 352 pounds.

The share has dropped about 28 percent since its year high of 485 pounds on April 22.

"It's not a bad price now," said Hashem Ghoneim, chief executive of El Nour Securities in Cairo. "There is still a lot of growth and they are well diversified."

Shares are trading at 12.44 times 2007 earnings, compared to a sector average of 17.74 times, according to Reuters data.

The well watched Hermes index .HRMS gained 1.43 percent to 730.98 points and the broader CIBC index .CIBC climbed 1.67 percent to 403.68 pounds. ($1 = 5.39 Egyptian pounds) (Writing by Will Rasmussen)