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Egypt stocks remain up on Tuesday, slash gains on profit-taking

Ahram Online , Tuesday 15 Mar 2016
Egyptian stock Exchange
The Egyptian Exchange bell is seen at the stock exchange in Cairo, Egypt, March 8, 2016 (Reuters)
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The Egyptian bourse closed in the green on Tuesday, though its gains retreated from the previous trading session's whopping increase, which approached seven percent after the Central Bank announcement it was adopting a more flexible exchange rate, depreciating the EGP value to 8.85 against dollar from the previous 7.73.

The market’s benchmark EGX30 rose 1.94 percent to remain at 7,003 points in a session that witnessed Arab and Egyptian investors as net sellers with some profitable operations, said Eissa Fathy, the vice head of the securities division at the Cairo Chamber of Commerce.

As a result, heavyweight Commercial International Bank (CIB) inched down 0.85 percent to close at EGP 39.59 per share

Foreign investors were only net buyers to the tune of EGP 49.9 million.

“The new dollar price against the pound drives foreign investors to buy more shares at less cost than before,” Fathy told Ahram Online.

The Central Bank of Egypt (CBE) continued providing banks with the greenback through special auctions, selling almost $400 million since Monday and will offer $1.5 billion on Wednesday to clear all import backlogs.

Real Estate Developer Talaat Moustafa Group (TMG) soared 5.72 percent to be sold at EGP 5.91 per share.

Orascom Telecom Media and Technology (OTMT) rose 1.52 percent to register EGP 0.67 per share.

Elswedy Electric shares rose 5.61 percent to register a price of EG 44.84.

The Egyptian cable manufacturer posted a net profit of EGP 1.351 billion in 2015 versus EGP 445 million a year earlier. The company will issue EGP 2 per share for Q4 profit, Reuters reported.

The stock exchange stated on Tuesday that it will allow Egyptian companies listed with foreign currency capital to trade their shares in Egyptian pounds.

The bourse’s decision, which was approved by the state’s financial regulating authority EFSA, comes after “some of these companies” complained about the lack of US-dollar liquidity, EFSA head Sherif Samy told Ahram Online.

“If these companies want their shares to be traded in local currency, then their boards have to hold an extraordinary general meeting to vote on the conversion from dollar to EGP,” Samy said. 

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