Egypt's stocks hit nearly 7-year high, despite protests

Ahram Online, Thursday 14 Aug 2014

High daily turnover worth over LE900 million to close the week's trading as market undeterred by Rabaa anniversary protests

 Egypt Stock Exchange
Traders work near the exchange bell at Egypt's Stock Exchange in Cairo (Photo: Reuters)

Egypt's stocks hit their highest level in almost seven years thanks to foreign buyouts, as brisk trading continued at the week's end despite expected protests to mark last August's violent dispersal of two Cairo protest camps that killed hundreds of supporters of ousted president Mohamed Morsi.

The market's benchmark EGX30 rose 1 percent to reach 9,386 points in a session that saw a significant total daily turnover of listed securities worth some LE904.5 million.

Foreign investors were net buyers of some LE67.5 million worth of shares – however, Egyptians were net sellers for LE36.8 million.

"Foreign investors (mainly institutions) have been net buyers of LE1.4 million worth of shares so far in 2014, compared to being net-sellers in the last three years," Eissa Fathy, vice head of the securities division at Cairo Chamber of Commerce, told Ahram Online.

Fathy said that foreigners prefer the long-term strategy to earn profits since they can see Egypt's economic recovery and better investment conditions, which explains them being buyers for nearly 17 consecutive sessions.

"As most Egyptian traders are individuals, they see it better to make profits in the short term," Fathy added.

The broader index EGX70 also posted a 1.2 percent rise.

Listed bellwether Commercial International Bank (CIB) rallied 2.8 percent to register a high share price of LE46.86.

Property developers Talaat Moustafa Group (TMG) and Palm Hills Development (PHD) declined 0.5 percent and 0.2 percent to close at LE9.82 per share and LE4.43 per share respectively.

TMG said on Thursday that its net profit was up 12 percent for the first half of 2014.

The company's after-tax-profit was LE351.543 million in the six months to 30 June, compared to LE312.76 in the first half of 2013.

However, real estate developer Six of October Development and Investment (SODIC) rose 2.3 percent to register a five-year high in its share price on Thursday, reaching LE44 after seeing significant net profits of LE91 million in the first half (H1) of 2014.

Orascom Telecom Media and Technology Holding (OTMTH) did not record a change, registering LE1.32 per share as the company's profit fell 22.7 percent in the second quarter to LE351.68 million.

Short link: