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Ezz Steel helps lift stock market - Daily News Egypt

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Ezz Steel helps lift stock market

CAIRO: Shares in Ezz Steel Rebars climbed more than 5 percent on Monday, helping boost the Egyptian bourse overall with news that the company planned to increase its stake in another steel firm, traders said. Ezz Steel is planning to raise its holding in Alexandria Iron and Steel to 50.86 percent from 21.48 percent, via …


CAIRO: Shares in Ezz Steel Rebars climbed more than 5 percent on Monday, helping boost the Egyptian bourse overall with news that the company planned to increase its stake in another steel firm, traders said. Ezz Steel is planning to raise its holding in Alexandria Iron and Steel to 50.86 percent from 21.48 percent, via a capital increase and a share swap, HC Brokerage reported. Alexandria Iron and Steel already provides Ezz Steel with most of its profits so a bigger stake is good new for investors, brokers said. Ezz Steel shares surged LE 5.02 ($0.88), or 5.7 percent, to LE 92.98, adding to Sunday s 19 percent rise. “Ezz Steel s main source of revenue is coming from Alexandria Iron and Steel, so increasing its stake should improve the bottom line, said Mohammed Kotb of Prime Asset Management. The stake increase is essentially part of a restructuring in the Ezz group of companies because Ezz Steel is acquiring the additional shares from Ezz Holding Co. But brokers said this was still beneficial to shareholders in Ezz Steel. Ezz Steel officials could not be reached for comment. Overall, the benchmark Hermes index climbed 772.75 points, or 1.3 percent, to 60,883.64 points but ended well below the day s high of 61,367.43 points. Dealers said the volatility was driven by small investors, seeking to book profits late in the session after a rebound from Thursday when the index hit its lowest level since early January. Orascom Telecom, one of the day s most active stocks, ended up LE 2.90 or 0.9 percent at LE 345.50 but had surged above LE 355 earlier in the session. The broader CIBC index closed up 0.34 points, or 0.1 percent, at 244.14 points. Reuters

Topics: FJP

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