EGX30 rises 0.5 pct in Wednesday trading following administrative court ruling upholding validity of Talaat Moustafa Group (TMG)'s Madinaty real estate project
Egyptian stocks recovered slightly on Wednesday on an administrative court verdict upholding the validity of Talaat Moustafa Group (TMG)'s flagship real estate project.
In 2010, a court ruled to annul the sale of state land for TMG's $3 billion Madinaty development project, saying that the land in question had been sold at deflated prices.
At the time, the government drew up a committee that re-valued the land. Accordingly, a new contract was signed between the government and TMG in late 2010.
Under the terms of the new contract, the Egyptian government would receive 7 per cent of the project's residential units in exchange for the land. The value of these units is estimated at LE15 billion (roughly $2.5 billion) or LE460 per square metre.
Egypt's main EGX30 index rose by 0.5 per cent on Wednesday, reaching 5,690 points in a session that saw only LE338 million in turnover.
The broader EGX70 index, meanwhile, also climbed 0.1 per cent.
TMG shares were among the day's prominent gainers, rising by 2.5 per cent. Blue chip property shares Palm Hills and SODIC both rose as well, by 2 and 1.6 per cent.
High-profile shares Orascom Construction Industries and Commercial International Bank also both registered gains, rising by 0.2 and 1 per cent.
Orascom Telecom and Ezz Steel shares likewise gained in value, climbing by 0.4 and 1.3 per cent.