Egypt stocks in the red due to profit taking after cabinet completion

Ahram Online, Wednesday 17 Jul 2013

Main index slips 0.26 percent in first session following swearing-in of transitional cabinet; 103 out of 168 total stocks register losses

Egyptian stock market
A view from the Egyptian stock market in Cairo (Photo: Reuters)

Profit-taking drove Egypt's main index down by 0.26 percent on Wednesday in the first trading session following the swearing-in of Hazem El-Beblawi's interim cabinet.

"This is a case of buy the rumour, sell the fact" Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online.

"The market was driven up by expectations of the completion of a transitional cabinet, and investors are looking to cash in on their profits now that it has been sworn in."

The new cabinet assembled for the first time on Wednesday morning as thousands of supporters of deposed president Mohamed Morsi staged protests outside its headquarters in downtown Cairo. 

Egyptians remained net buyers at LE 2.9 million, while Arab and other foreign investors were net sellers during the session which saw LE353 million in total turnover.

103 out of a total of 168 stocks registered losses, including blue chip Commercial International Bank and investment bank Egyptian Financial Group-Hermes Holding Company in the EGX 30 index, down by 0.9 and 0.45 percent, respectively.

In the real estate sector, TMG Holding slid 0.63 percent and Palm Hills Development Company 0.41 percent, while Six of October Development & Investment (SODIC) rose 0.88 percent.

Orascom Telecom gained 1.14, and Orascom Construction Industries (OCI) rose 0.3 percent.

OCI announced on Wednesday that as of the latest filings on 16 July 2013, 25.89% of its shareholders on the Egyptian Exchange had responded to the tender offer launched on 27 June 2013 by Dutch parent company OCI NV.

The press release reported that 11,568,700 shares, representing 23.05% of the offer size, had elected to convert into OCI N.V. A shares, while 1,424,973 shares, representing 2.84%, had requested the cash offer of LE 255 per share.

The broader EGX 70 index also dropped by 0.98 percent.

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