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Tuesday, 13 April 2021

Egyptian stock exchange ends the week on a positive note

Egyptian benchmark EGX30 index gained 1.17 percent on Thursday after reaching a year low earlier in the week

Ahram Online, Thursday 13 Jun 2013
Traders work at the Egyptian stock exchange in Cairo (Photo: Reuters)
Views: 1094
Views: 1094

Egyptian benchmark EGX30 index made up somewhat for the week’s heavy losses on Thursday, gaining 1.17 percent to reach 4,651 points.

The index had fallen 5 percent on Wednesday to reach a one-year low.  

"Over the past days, buyers were awaiting another wave of selling to drag shares’ prices down further," Issa Fathi, vice president of the securities division at the Egyptian Chamber of Commerce told Ahram Online. 

"On Thursday, selling operations decreased slightly, forcing buyers to raise prices," he added. 

Turnover, however, decreased considerably compared to Wednesday, to register LE172.2 million ($24.6 million).

Egyptians, worried by political instability, continued to be net sellers, registering a net flow of LE47.5 million, while foreign and Arab investors were net buyers.

"Foreigners and Arab are eyeing medium and long term investments," underlines Fathi. 

In general, when share prices drop beneath their real market price, they become attractive for long term investment, as a rise in value over time is almost certain.

Egyptian stocks were dealing in the red since the beginning of June, with the exception of Tuesday's and Thursday's sessions. 

The market was driven during today's session by solid performances by market bellwethers Commercial International Bank (CIB) and Orascom Construction Industries (OCI) on the London Stock Exchange.

On the Egyptian exchange, CIB gained 1.36 percent while OCI rose by 0.09 percent.

Orascom Telecom Holding (OT) and Telecom Egypt gained 1.33 percent and 1.10 percent respectively and Egypt's biggest investment bank EFG-Hermes rose by 2.15 percent.

Over the week, the EGX30 has lost 8.1 percent. 

Fathy expects a better performance over the coming week, with the market stabilising and reducing its losses or even to achieving slight gains. However, he believes turnover will be low. 

Out of 158 shares traded over the day, 80 gained in value while 51 lost.

The broader index EGX70 gained 0.52 percent. 

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