Egypt shares gain on bank plan

Egypt's benchmark stock index rose to the highest level in more than a month after EFG-Hermes Holding SAE and Qatar's QInvest LLC said they plan to create an investment bank in the country. EFG-Hermes shares were suspended by the bourse pending the release of more information. Talaat Moustafa Group Holding, the country's biggest publicly traded real estate developer, climbed 4.8 per cent. Commercial International Bank Egypt SAE, also known as CIB, rose for the first time in three days. The EGX 30 Index gained 0.9 per cent to 4,973.62 at the 2.30pm close in Cairo, the highest level since March 29. EFG-Hermes, the biggest publicly traded Arab investment bank, said on Friday it agreed to start an investment bank that will be 60 per cent owned by the Qatari company. QInvest, a unit of Qatar Islamic Bank, will invest $250 million (Dh918.3 million) in the venture. No reason given The bourse cancelled all March 3 trades in EFG-Hermes, without giving a reason. The stock is up 31 per cent this year, compared with a 37 per cent gain for the EGX 30. "The EFG-Hermes agreement is positive from the perspective of locals because it reaffirms, after the Mobinil deal with France Telecom, that foreigners are still interested in Egyptian companies," said Teymour Al Derini, head of Middle East sales at Cairo-based Naeem Brokerage. Egypt's market regulator approved last month an offer by France Telecom SA to raise its stake in Egyptian Co for Mobile Services, the country's second-biggest mobile network operator also known as Mobinil. The deal is valued at $2 billion. Talaat Moustafa rose the most in two weeks to 4.16 Egyptian pounds (Dh2.53). CIB, Egypt's biggest publicly traded lender, advanced 0.6 per cent to 25.53 pounds