High results expectations drive market to rise 0.56%
Khaled Barakat, Wednesday 8 Dec 2010
The EGX30 rose 0.56 % to close at 6,773.66 points, driven by institutions on a buying spree, leading to a high market turnover.

EGX30, the main index of the Egyptian stock market, closed out today on an advance of 0.56%, to end the day at 6773.7 points.

"The institutions drove the market to rise on Wednesday, with a large volume of transactions," said HSBC Capital senior broker Mohamed Elsebaie. He added that the market is ready for a "wave of optimism" as good results are expected by the end of the year 2010.

A total of 96.5 million shares were exchanged at a total value of LE1.47 billion.

Leading companies ended up, except for Orascom Construction Industries (OCI) that retreated 0.58% to LE265.

Orascom Telecom Holding (OTH) was the most traded.

”The positive news will support the market during the next phase" said financial analyst Hanafy Awad.

The General Co. for land reclamation was the top mover to the upside, soaring 10.5% to LE39.5. It was followed by Al-Baraka Bank Egypt that surged 7.07% to LE10.5.

On the bleak side, Silos and Storage was the biggest drag on the overall index, plunging 9.60% to 26.9. It was followed by Egyptian-Kuwait that dropped 4.58% to LE3.75.

Foreigners were inclined towards purchasing today, with a buy/sell difference of LE69.4 million.

Conversely, nationals and Arabs headed towards offloading their equities.

Nationals dominated about 81% of total trading, while foreign and Arab investors accounted for 14.22% and 4.66% consecutively.

Retail investors, who tended towards selling, controlled 30.83% of total trading.

Meanwhile, institutional traders dominated about 70% with a buying spree.

All the sectors ended on a green note today except for health care and construction, which was the most active dominating 19.8%. It was followed by telecommunication which controlled 15.3% and banks that accounted for 11.97%.

Optimism contagion extended to the “EGX70”, the index for small and medium businesses, which rose 1.4% to 743 points.