Six of October Development & Investment Co. surged to the highest level in five months on speculation the Cairo-based property developer is in talks to buy a stake in Medinet Nasr Housing.
Shares of the company, also known as Sodic, climbed 8 percent to 15.02 Egyptian pounds, the highest level since Sept. 15, at the 2:30 p.m. close in Cairo. The stock soared 50 percent in eight days. The benchmark EGX30 Index fell 0.7 percent today.
Sodic Chief Financial Officer Salah El Shafey said today the company isn’t negotiating to buy Medinet Nasr shares and the latter said it had no “material news” to report.
“Investors are speculating Sodic is negotiating to buy Beltone’s stake in Medinet Nasr, so shares of both companies are moving in tandem,” said Hassan Kenawi, equity trader at Cairo-based HC Brokerage.
Beltone Investment Group holds a 23 percent stake in Medinet Nasr, data compiled by Bloomberg show. An official at Beltone wasn’t immediately available to comment.
Medinet Nasr gained for a fifth day, jumping 8 percent to 16.45 pounds, the highest level in more than six months. Beltone Financial Holding SAE advanced 0.8 percent.