Since the Egyptian Stock Market re-opened over one month ago, trading has been unpredictable, but technology and telecom companies have seemingly done well. On Monday, after Orascom Telecom announced the appointment of a new chief executive officer, the company’s shares rose over one percent as traders appeared confident on the move.
Ahmed Abou Doma, the former head of Orascom’s Bangladesh operations, was appointed as the new CEO, the company said in a press statement on Monday.
The rise in share prices was the highest level it has been in almost two months and analysts said it was a direct result of Abou Doma’s appointment.
“It is because traders and investors believe that OT is making all the right moves right now for a better future that will see massive investment,” said one trader.
The company’s shares rose 1.2 percent to 4.14 Egyptian pounds, the highest it has been since May 3. With the rise in shares, the company is now valued at 21.7 billion Egyptian pounds, or $3.7 billion.
“Abou Doma has a very good track record as he’s run a successful operation at Bangalink,” said Amr el-Alfy, deputy director of research at Commercial International Brokerage. “Promoting from within also creates a good atmosphere for Orascom employees,” he told reporters.
Banglalink, Orascom’s third-biggest unit by revenue, brought in some $450 million last year, up from about $351 million in 2009. The subsidiary has over 19 million mobile subscribers.
By Desmond Shephard
