Egypt's stocks continue slide on profit taking, SODIC rights issue

Ahram Online, Sunday 14 Sep 2014

Profit taking ahead of holidays and reshuffling of LE1 billion SODIC rights issue drive main index down to 9,427 points on Sunday amid weak turnover

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

Egypt's shares slid on Sunday as investors sought to cash in on profits after a six year high earlier this month and gain liquidity in anticipation of an important rights issue by property developer Six of October for Development and Investment (SODIC).

The main EGX30 index ended the trading session down 0.51 percent at 9,427 points, as blue chips fell.

Market bellwether Commercial International Bank (CIB) was down 1.61 percent to trade at LE47.14, metallurgical giant Ezz Steel slid 1.82 percent to LE18.38 and Cairo-based investment bank EFG-Hermes fell 0.81 percent to LE18.34.

Total turnover of listed stocks registered a modest LE501 million.

The slide is a continuation of the previous week's profit taking, Ahmed Hakam, fund manager at Cairo-based HC Securities, told Ahram Online.

A rights issue by SODIC for LE1 billion – divided over 250,000 shares at LE4 per share and due to start on 1 October – is also pushing investors to seek liquidity, says Hakam, who expects profit taking and modest turnover to continue over the coming weeks with the approach of the national 6 October holiday and the Islamic Eid holiday in early October.

In the real estate sector, SODIC itself was down 1.14 percent to trade at LE46.65 and the largest listed developer TMG Holding fell 0.36 percent to LE11.03. Palm Hills Development Company saw its share price rise 1.41 percent to LE4.33.

Telecom Egypt fell 1.72 percent to trade at LE14.3, while Global Telecom Holding was up 1.56 percent to LE5.2.

The broader EGX70 index rose 1 percent.

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