CAIRO - Egypt’s benchmark stock index gained the most in almost two weeks after the country’s public prosecutor detained former President Hosni Mubarak and his sons while they are being investigated for alleged corruption.
Talaat Moustafa Group (TMGH) Holding, the country’s largest publicly traded real-estate developer, gained 1.9 per cent.
Telecom Egypt, the biggest fixed-line telephone company in the Middle East, snapped a five-day drop, advancing the most since April 5. The EGX 30 Index (EGX30) rose 1.1 per cent, the most since April 3, to 5,261.2 at 12:20 p.m. in Cairo.
Mubarak and his sons Gamal and Alaa were detained for 15 days, state-run Nile News television reported today, citing the prosecutor’s office.
The three men were summoned for questioning about alleged embezzlement of public funds and attacks on protesters during the uprising against Mubarak’s regime, the prosecutor said April 10.
Egypt’s ruling military council confirmed on its Facebook page that investigators have started questioning Mubarak and his family.
Stocks are seeing a “technical rebound” from the 5,200 level, which is “supported” by “the easing of political tensions” after Mubarak’s detention, said Tamer Nigm, head of sales and trading at Cairo-based Watheeqa Securities Brokerage.
“We expect this to be a short-term rebound as big uncertainties remain on the political and economic fronts.”
Talaat Moustafa advanced to 4.29 Egyptian pounds, valuing the company at 8.6 billion pounds ($1.4 billion). Telecom Egypt (ETEL) rose 1.6 per cent to 16.8 pounds.
Delta Sugar, Egypt’s biggest publicly traded sugar refiner, climbed 3.6 per cent, the most since April 3, to 21.55 pounds.
The company agreed to buy a 300 feddan (311 acre) plot of land from the Ministry of Endowments for 53 million pounds to build a new plant, Al Mal reported, citing Masoud Hamed, Delta’s director of administrative affairs.
