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Egypt's stock market shows recovery signs amid political mayhem

Egypt's bourse saw some measure of recovery Wednesday after suffering harsh blows in response to countrywide violence

Ahram Online, Wednesday 30 Jan 2013
Egyptian stock exchange
Traders work at the Egyptian stock exchange in Cairo (photo: Reuters)
Views: 1431
Views: 1431

Egypt's stock market staged a partial recovery Wednesday after a wave of uncertainty and violence hit major Egyptian cities, particularly Cairo, Port Said, Suez and Ismailia.

Egypt's main benchmark EGX30 index rose by 1.47 per cent to stand at 5,576 points. The broader EGX70 rose by 1.46 per cent.

On Monday, President Mohamed Morsi declared a state of emergency in Port Said, Suez and Ismailia in the wake of deadly clashes, although the opposition condemned the measure.

"Yesterday's session witnessed towards its end a sudden surge in trading and this is what led the market to rise today. The market seems to have ignored the current political stalemate," said Ashraf Abdel Aziz, head of institutional sales at the Cairo-based brokerage Arabeya Online.

Out of 166 traded stocks, around 126 stocks recorded gains while only 16 suffered losses. Blue-chip stocks Orascom Construction Industries (OCI) and Commercial International Bank (CIB) both rose, by 1.89 and 1.91 per cent respectively.

"How the market will perform in tomorrow's session really depends on the country's political situation. It's something impossible to predict for the time being," Abdel Aziz told Ahram Online.

Turnover registered a weak LE273 million, revealing that foreign investors are still cautions regarding the political situation in Egypt.

Foreign and Arab investors were net sellers for the day, selling off LE18 million and LE216,000 in stocks respectively. Egyptian investors, meanwhile, were net buyers, picking up some LE18 million worth of shares.

The real estate sector saw strong performance today, representing almost 14.2 per cent of market activity. Heavyweights Talaat Mostafa Group Holding (TMGH) and Palm Hills Development rose by a healthy 3.48 per cent and 1.29 per cent respectively.

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