Egyptian traders share a laugh as they take their seats before the start of trading at Cairo Stock Market (Photo: AP)
Egyptian stocks swung back into the green on the last trading day of the week as the peaceful staging of a major football match in Cairo gave investors confidence in the country's security despite recent political violence.
The benchmark EGX30 finished Thursday up 1.69 per cent at 5,373 points, going some way to recouping Wednesday's losses when the index dropped 2.01 per cent after Tuesday night crackdowns by security forces on protesters in central Cairo saw over 1,000 injured.
“When the Ahly-Zalamek [football] match was carried on as scheduled it sent a message that everything is normal and under control,” said Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce.
Egypt’s much-anticipated football derby was held on Wednesday night at a Cairo stadium attended by over 45,000 impassioned fans. Despite minor conflicts between players and coaches of both sides towards the end of play, the game went smoothly.
There was plenty of green off the pitch on Thursday, where the Bourse's 184-stock trading board was splashed with gains. Basic resources was the only sector to make an overall loss as shares in 102 firms climbed and 68 declined.
Total equities turnover was LE590.9 million, much of it taken up by trade in the Commercial International Bank (CIB) which recorded LE106.735m of activity and finished the week up 5.01 per cent.
"Foreign investors prefer CIB shares and high activity on this stock is always representative of their overall activity in the market," said Fathy.
Market stats saw foreigners making up 22.36 per cent of trade and reversing two weeks of selling to become net-buyers to the tune of LE17.756m. By contrast, Egyptians were net-sellers and offloaded LE23.88m.
Other financial firms followed CIB's upwards lead, with Pioneers Holding gaining 4.4 per cent following its report of 2011 first quarter profits of LE25.2 million earlier in the day. Beltone Financial Holding also rose 4.90 per cent. Top gainer was Arab Dairy Products, up 6.99 per cent.
Arab Cotton Ginning shares closed up 4.35 per cent on the back of its announcement of 127 per cent profit growth. Company profits reached LE81 million in the last nine months of operations leading up to March 2011 versus LE36 million for the same period last year.
"Prices have reached a level where foreigners are buying again," said Fathy, calling it an important indicator the market might be starting an upward trend, having cleared the 5,280 point level generally regarded as a major support point.
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