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Egypt stocks shed 0.8% on weak investment appetite

With little financial news to inspire local market, EGX30 and EGX70 both decline by 0.8 percent on first day of trade week

Ahram Online, Sunday 26 May 2013
Egypt
An interior view of the Egyptian stock market is seen in Cairo (Photo: Reuters)
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Egypt stocks began the trading week on Sunday in a state of stagnation, with little news to inspire the local market.

Notably, market giant Orascom Telecom Holdings (OTH) moved closer to being delisted on Sunday after shareholders of around 10 percent of the company's stock agreed to be bought out.

The delisting of OTH will likely allow Vimpelcom to cut expenses associated with its Egyptian operations, avoid regulatory risks and political instability, and improve efficiency by placing OTH assets under Vimpelcom's direct management.

OTH fell by 2.3 percent on Sunday to close the day out at LE4.51 per share.

Egypt's main EGX30 index, just like the broader-based EGX70, declined by 0.8 percent for the day.

Total daily turnover stood at a mere LE156.7 million, despite a decision by Egypt's state-run clearing, depository and registry authority to return a total of LE10.2 million ($1.5 million) in taxes it collected from shareholders of National Societe Generale Bank (NSGB).

Egypt's Islamist-led government had shocked foreign investors in March when it imposed a 10 percent tax on investment profits from the takeover by Qatar National Bank of local lender (NSGB), Egypt's second-largest private-sector bank.

Heavyweight share Commercial International Bank rose by 0.4 percent on Sunday, despite the general downturn, while Orascom Construction Industries shed 0.8 percent for the day.

Property stocks Talaat Mostafa Group, Palm Hills and SODIC, meanwhile, fell by 1.6, 2.1 and 2.7 percent, respectively.

Domestic investors represented net buyers for the day at LE4.8 million, while foreign investors were net sellers on Sunday at LE11.1 million.

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