Last Update 15:10
Thursday, 20 June 2019

Market Report: Bargain-hunting and Tantawi speech push Egypt stocks up 1.7 per cent

Bourse bounces back for a second consecutive day, ending a turbulent week with 150 stocks in the green

Ahram Online, Thursday 24 Nov 2011
Stocks stage a revival in spite of unrest, as prices fall to attractive levels (Photo: AP)
Views: 568
Views: 568

Egypt’s stocks closed Thursday in the green for the second consecutive session, having shed almost 12 per cent in the first three days of this week following deadly clashes in Cairo’s Tahrir Square and other parts of the country.

The exchange’s main benchmark, the EGX30, gained 1.69 per cent to close at 3,780 points. The broader EGX70 also finished up 2.48 per cent.
"The market’s surge was possibly due to either bargain hunting as prices are very low  or the speech delivered by [military council leader] Field Marshal Tantawi on Tuesday night,” says Mostafa Badra, a capital market expert.
On Tuesday, Tantawi, Egypt’s de facto ruler, announced an accelerated transitional plan which would see presidential elections held in June 2012.
His speech, while appealing to many Egyptians, failed to clear Egypt’s iconic Tahrir square of protesters or stop the violence between disgruntled demonstrators and security forces.
The two major stocks that carried the market upwards were Commercial International Bank (CIB) and Orascom Telecom (OT), making up around 30 per cent of the day’s volume at LE45 million and LE30 million, respectively.
OT gained a whopping 6.05 per cent to close at LE2.98 per share as the company’s share split into two approaches. OCI climbed a comparatively meagre 0.11 per cent,
“Due to the weakening Egyptian pound and the growing uncertainty in Egypt’s future, many are transferring their money abroad through Global Depository Receipts (GDR) in CIB,” says Badra.
He explained that instead of directly transferring money abroad, investors buy stocks in CIB, which converts them into GDRs which can then be sold in an overseas market.
The Egyptian pound has been trading this week at its lowest levels since January 2005, sinking 3.2 per cent to fall to LE6 to the dollar.
High buying pressures on CIB caused the market's second biggest share to gain 3.92 per cent and close at LE21.46 per share.
Total turnover on Thursday reached LE251 million, with 150 stocks gaining and 22 finishing in red.
Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.