Talaat Moustafa Group Holding led a second day of gains for Egypt’s real-estate developers after the government said it is preparing a law to protect investors from prosecution on dealings with the former regime.
Talaat Moustafa, Egypt’s biggest publicly traded real-estate developer, jumped 5.8 percent to 4.23 Egyptian pounds at the 2:30 p.m. close in Cairo, bringing the two-day gain to 15 percent, the most in almost a year. Six of October Development & Investment Co. climbed 5.4 percent to 65.24 pounds, bringing its two-day increase to 14 percent. Palm Hills Developments SAE jumped 4.3 percent to 1.96 pounds, taking its two-day advance to 13 percent.
Egypt’s government is preparing a law to protect investors from criminal prosecution, Cabinet spokesman Ahmed El Simman said yesterday. It will be presented in “days” and will include the creation of a committee to settle investment disputes, he said.
“Since a large portion of businessmen are involved in housing and real estate, the sector is on fire led by Talaat Moustafa and Palm Hills as they were the hardest hit after the revolution,” said Omar Darwish, equity sales trader at Cairo-based Commercial International Brokerage Co.
Egyptian courts have annulled land purchases agreed under the government of former President Hosni Mubarak without a competitive bidding process. An appeals court is scheduled to rule on May 24 on a 33 million square-meter (355 million square-foot) purchase by Talaat Moustafa for its Madinaty development.
Separately, Talaat Moustafa reported first-quarter profit of 169.4 million pounds ($28.5 million), exceeding the 140.7 million pound average estimate of three analysts on Bloomberg.