Mobinil, OT gain to help Egyptian shares rise
CAIRO, April 7 (Reuters) - Shares of Orascom Telecom (ORTE.CA)(ORTEq.L) and Mobinil (EMOB.CA) rallied on Tuesday for a second session after a court ordered that Orascom sell its stake in Mobinil to France Telecom (FTE.PA) at a premium.
Shares of Orascom, which has said it could raise $1.7 billion from the sale, gained 3.96 percent to 29.90 Egyptian pounds ($5.32).
The sale would benefit Orascom by giving it cash to reduce its debt, said Angus Blair, head of research at Cairo-based investment bank Beltone Financial.
Shares of Mobinil, officially called ECMS, surged 20 percent to 180.03 pounds. Orascom said the court order would oblige France Telecom to buy Mobinil shares for 273.26 pounds per share.
"Retail investors are excited about the sector," Blair said.
Shares of both companies jumped early in the session on Monday before the stock market suspended trading on them.
The benchmark EGX30 index .EGX30 eased 0.39 percent to 4,797.95 points. Orascom Construction Industries (OCIC.CA)(OCICq.L), Egypt's largest builder by market value, led declines, retreating 5.25 percent to 148.63 pounds.
($1 = 5.62 Egyptian pounds)
(Writing by Will Rasmussen)
((william.rasmussen@reuters.com; +20 2 2578 3290/1; Reuters Messaging: william.rasmussen.reuters.com@reuters.net)) Keywords: MARKETS EGYPT/CLOSER
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Top 10 by volume .AV.CA
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GDRs <0#.SIEY> RELATED NEWS AND OTHER TOPICS
Egypt news - [EG]
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Sunday, 30 November 2008 16:18:04RTRS [nLU167708 ] {C}ENDS Keywords: MARKETS EGYPT CLOSER =2
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