Talaat Leads Real-Estate Rally Amid Inflation Bets: Cairo Mover

Talaat Moustafa Group Holding led surging Egyptian real estate shares as investors anticipate inflation will increase demand for properties.

Egypt’s biggest publicly traded property developer headed for the biggest gain in six months, extending April’s rally to 11 percent. Palm Hills Developments SAE (PHDC) was poised for the highest close in more than a month. The benchmark EGX 30 Index (EGX30) advanced 1.5 percent to 5,228 as of 12:23 p.m. in Cairo.

The rally in property shares is driven by “inflation-hedge plays which could trickle in improved earnings and also genuine demand for real-estate companies in Egypt,” said Teymour El- Derini, Cairo-based director of Middle East and North Africa sales trading at Naeem Brokerage.

The EGX 30 Real Estate Index (EGXREAL) is up 8.7 percent this month, compared with a 2.5 percent gain for the benchmark gauge. While inflation eased in March for the first time this year, economists at investment banks EFG-Hermes Holding SAE and CI Capital forecast prices will climb further amid a currency devaluation. The pound has weakened more than 7 percent this year as Egypt’s foreign-currency reserves tumble.

Talaat Moustafa rose 5.4 percent to 4.1 Egyptian pounds. Palm Hills increased 6 percent to 2.13 pounds. Trading volume of both shares exceeded their three-month daily averages. Heliopolis Housing (HELI) ans Six of October Development & Investment Co. gained 4.6 percent and 2.7 percent, respectively.

To contact the reporter on this story: Ahmed A. Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net

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