Egypt's stocks down as investors lose trading appetite on Ramadan start

Ahram Online, Sunday 29 Jun 2014

Analysts have expressed concerns that the government is pressuring businessman to give up their wealth, as per President El-Sisi's recent donations

stock market
Traders work at the Egyptian stock exchange in Cairo (Photo: Reuters)

Egypt's main index EGX30 fell 0.28 percent to register 8,070 points on Sunday with the start of Ramadan while the broader index EGX 70 increased 0.38 percent in a session that saw a mere LE228 million of listed stock turnover.

Ramadan is the holy month during which Muslims refrain from eating or drinking from dawn to dusk.

"Low turnover level is a trend continuing from last week which demonstrates investors' concerns over recent government policies," Eissa Fathy, vice head of the securities division at Cairo Chamber of Commerce, told Ahram Online.

President Abdel-Fattah El-Sisi announced last week that he will give up half his wealth to support Egypt's ailing economy. Since then several businessmen and governors have followed suit.

However, Fathy expressed concerns that the government seems to be cornering businessmen to give up a stake of their wealth for the country's economy.

The central bank also started an account named 037037 to collect donations to support the economy, the bank's governor announced earlier this month.

"Investors are also worried and concerned because they own stakes in companies established and run by those businessmen," added Fathy.

Egyptian investors were net sellers to the tune of LE7 million while non-Arab investors were net buyers to the tune of LE4 million.

Investment bank Egypt Financial Group-Hermes (EFG-Hermes) inched up 0.39 percent to LE15.36 per share, despite an announcement from HC Securities and Investment that the share's fair price was LE22.93 per share.

Earlier this month, Cairo-based Beltone Financial and Naguib Sawiris offered to buy 20 percent of EFG-Hermes at LE16 per share.

The financial services sector also saw Arabia holding company for investments and development drop 1.62 percent to LE1.83 per share.

Market bellwether Commercial International Bank (CIB) declined 0.06 percent to LE35.2 per share.

Telecom Egypt (TE) gained 0.08 percent to stand at LE13.3 per share.

In real estate sector, Talaat Moustafa Group (TMG) company dropped 0.59 percent to LE8.43 per share, while Six of October Development and Investments Company (SODIC) fell 0.73 per share to LE31.33 per share.


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