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Wednesday, 16 October 2019

Market Report: EGX30 declines on popular split over new Cabinet

With political uncertainty continuing in Egypt, the shares market remains suppressed

Bassem Abo Alabass, Thursday 8 Dec 2011
Egypt Stock Exchange
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Views: 584

Egypt's bourse ended the week of trading in the red as the main index, the EGX30, fell 0.6 per cent recording 3.970.05 points. "Uncertainty and tension after the new government was sworn in, as Egyptians' opinions are divided between acceptance and rejection," is a reason for the dip, said Mostafa Badra, a capital market expert.

Foreign sales were small at LE1.4 million, unlike Egyptians who were net buyers with LE28.3 million.

Badra explained that the empty chair at the head of the Ministry of Investment raised investors' worries.

From 176 listed stocks, 53 gained and 109 plunged in a session that saw a low turnover of LE161.6 million. "It is one of the lowest turnovers for six years," added Badra.

Broader indices followed the bourse's benchmark with the EGX70 falling 0.5 per cent and the EGX100 closing down by 0.4 per cent.

None of the heavyweight shares saw positive activity, with all trading in the red, headed by Commercial International Bank (CIB) which slumped one per cent, although it reached the highest turnover in the list with LE 25.3 million.

Orascom Construction Industries (OCI) fell slightly by 0.03 per cent and property shares also suffered as Talaat Mustafa Group and Palm Hills declined 2.1 per cent and 1.5 per cent respectively.

EFG-Hermes and Ezz lost 1.8 per cent and 0.2 per cent respectively. "The market's pioneers, CIB and OCI are impacted by the negative change in GDR trading, plunging 2.8 and 2.5 per cent respectively," commented Badra.

Setting a different tone, Mohammed Assran, member of the Board of Directors of Pioneers Securities, told Reuters: "I expect the market to rise over the next week. I'm optimistic. I expect the emergence of new economic decisions soon to support the market."

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