By Mahmoud Salah El-Deen

Cairo – Mubasher: Global Telecom (GT) leapt more than 261.5% from the lowest quote registered in January 2016 at EGP 1.51 to the highest mark in October at EGP 5.46, regardless of the negative performance of many blue-chip stocks.

"The telecom firm took no major corporate action during this period", said the company in a bourse filing yesterday, adding "no earning multiplier was listed due to FY15 consolidated losses".

Over the last thee month, the stock quote rose 30%, thus moving within the regulatory scope that requires a fair value study just in case of a more than 50% rise.

Like CIB, Pioneers, or EFG-Hermes, the stock has been moving upwardly since the beginning of 2016, said market analyst Hesham Hassan, noting that all traders holding GT stock all over this period achieved the strongest investment in the Egyptian Exchange so far.

The stock is likely to see a profit-taking wave at the EGP5 – 5.5 zone, Hassan added, expecting the stock to either stop responding to more rises or witnessing a violent phase of correction.

On Tuesday, the stock quote declined 4.36 with a trading value up to EGP 98.2 million.

Likewise, GT global depositary receipts (GDRs) surged 60.8% to $2.01 yesterday, compared with $1.25 at the beginning of 2016.

Economic analyst Ahmed Adel attributed early downfall this year to the market's general trend, assuring this decline does not mirror the company's positions after restituting its operations and stepping away from all burdensome projects in Africa and Canada by the end of 2015.

GT stable position will leave a positive impact on all future financial statements as all activities are valued in US dollar, which are likely to increase traders' appetite for increasing their position on well-established stock's value ahead of a possible devaluation or floatation of the pound.

During the second quarter of 2016, the company's net losses narrowed 71.4% year-on-year to $37.6 million from $131.5 million. 

Meanwhile, Q2 standalone losses reached $37.6 million, lower 71.4% from $131.5 million.