Egypt's stock investors welcome cabinet resignation, stocks continue rally

Ahram Online, Monday 24 Feb 2014

The resignation of Egypt's prime minister pushed investors to buy stocks and move the market up

Egypt's resigning Cabinet last full meeting, 19 February 2014 (Photo: Egypt's Cabinet Facebook page)

Traders on Egypt’s stock exchange responded to the announcement of the government’s resignation on Monday with a series of buys to push up the market, only hours after cashing in on profits from the previous session.

The main index EGX30 rose 0.4 percent, reaching 8,045 points in a session that saw 51 securities up out of the 185 listed.

Egypt’s Prime Minister Hazem El-Beblawi announced on State TV Monday by noon that his cabinet submitted its resignation to Interim President Adly Mansour.

He stated "reform cannot take place through the government alone," adding that all Egyptians should strive to achieve change.

"I think investors welcomed the leave of El-Beblawi's government probably due to the media's criticism of it," said Eissa Fathy, the vice head of the securities division at the Cairo Chamber of Commerce.

The broader index EGX70 closed down 0.8 percent as domestic investors, mostly individuals, ended trading as net sellers at some LE30 million.

Foreign investors continued as net buyers worth some LE50.7 million on Monday as the market witnessed a daily turnover of listed securities worth LE1.08 billion.

The market's bellwether Commercial International Bank (CIB) rose slightly by 0.05 percent, closing at LE.36.9 per share.

Property developers Talaat Moustafa Group (TMG) and Palm Hills Development (PHD) went up 1.9 and 0.3 percent to LE7.9 and LE3.4 per share, respectively.

Six of October Development and Investment (SODIC) modestly decreased by 0.2 percent, recording LE25.5 per share.

Telecommunication stocks Telecom Egypt (TE) and Global Telecom (GT) dipped 0.1 and 0.5 percent, closing at LE15.1 and LE4.9 per share respectively.

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