Orascom Telecom Media & Technology Holding SAE (OTMT), an Egyptian telecommunications company, rose the most in more than two weeks as the stock attracted retail investors after adjusting for the dividend.
Shares of the Cairo-based company surged by the daily limit 10 percent before closing 2.5 percent higher at 41 piasters in Cairo. That’s the biggest increase since July 2. The company will distribute a dividend of 1.05 pounds a share July 19 after the sale of most of its stake in Egyptian Co. for Mobile Services to France Telecom SA (FTE) earlier this year. The benchmark EGX 30 Index (EGX30) increased 1.6 percent.
“A lot of the buying we’re seeing today is by retail investors that are finding the stock cheap,” said Hassan Kenawi, equities trader at Cairo-based HC Brokerage. “This should only last for a day or two as the future of the company is still unclear.”
The stock was initiated with a hold recommendation this week by Pharos Holding for Financial Investments. The bank cited a lack of information about Orascom Telecom Media’s strategy and the concentration of its “remaining value in a high-risk asset” in North Korea’s Koryolink. The company owns about 75 percent of the Korean mobile network operator.
To contact the reporter on this story: Ahmed A. Namatalla in Cairo at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com