Orascom Telecom, Egypt’s largest mobile operator, continued on Sunday its surge on the country’s Stock Market. It was a major catalyst in forcing the bourse to shut down due to trading volumes being too high.
The emergency circuit breaker forced the closing of the markets earlier after stocks rose more than five percent, ending days of drops following last Wednesday’s reopening after two months closed.
Orascom Telecom, which increased 9.5 percent, is expected to continue to grow steadily as analysts believe the telecom sector is primed to rebound faster than other industries.
“We have seen how important the telecom industry is to this country after the protests took down the president and his government, so it is no surprise that companies and individuals want to get in on this now before it is too late,” said Hossam Murad, a New York-based Middle East tech analyst. He argued that Orascom Telecom already had a large infrastructure base, “so they are well-positioned to take advantage of this rise.”
Orascom’s Nassef Sawiris said the country is beginning to see economic worries answered in the aftermath of the ousting of President Hosni Mubarak left the country’s economy in shambles. He said investors were beginning to see the positives in entering the Egyptian market again.
“I think the biggest challenge is economical,” Sawiris said in comments carried by local newspapers.
“That is something Egypt has to tackle – not alone, but with the support of the rest of the world. The other challenges we face existed in the past and will exist in the future. They will take care of themselves.”
By Desmond Shephard
