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Egypt market down on pre-emptive profit-taking ahead of poll result

Selling-pressure in anticipation of election victory by former army chief drives indices down 0.3 percent amid high turnover in a volatile session as nationwide poll gets underway

Ahram Online, Monday 26 May 2014
election
People wait in line before the opening of a polling station during a Egyptian presidential election in Cairo May 26, 2014. (Photo:Reuters)
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Egyptian stocks ended Monday's session in the red, pulled down by profit-taking from investors on the first day of voting in Egypt's presidential poll.

The main EGX30 index dipped 0.3 percent to close at 8,736 points as daily turnover neared LE1.5 billion at the end of a volatile session.

The broader EGX70 also fell 0.31 percent.

Sellers, who were predominantly Egyptian, acted pre-emptively according to the "buy the rumour, sell the news" market logic in anticipation of an election victory by military strongman Abdel-Fattah El-Sisi, Mohamed Radwan, head of equities at Pharos Holding, told Ahram Online.

"The market had been going up since last week in anticipation of the election, so investors are expecting a dip after the official announcement of El-Sisi's victory, similar to the one that occurred after the official announcement of his nomination," explained Radwan.

The market had witnessed a significant drop in March following the long-anticipated announcement by El-Sisi that he would run for the presidency.

Egyptians were the net-sellers for the session, to the tune of LE60.4 million.

Four retail-dominated stocks, Orascom Telecom Media and Technology Holding, Palm Hills Development Company, Amer Group Holding, and Citadel Capital, accounted for over 40 percent of market turnover.

The majority of EGX30 shares fell, including market bellwether Commercial International Bank (CIB) by 0.08 percent to trade at LE38.44.

In the real estate sector, Palm Hills Development Company dropped 0.65 percent to LE4.62 a share and Six of October Development and Investment Company (SODIC) shed 1.80 percent to LE28.34, while TMG Holding gained 0.10 percent to LE9.99.

Another gainer was metallurgical giant Ezz Steel, up 0.16 percent to trade at LE18.43.

Telecom Egypt saw its share price fall 0.68 percent to LE14.52.

 

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