An interior view of the Egyptian stock market is seen in Cairo (Photo: Reuters)
Egypt's stock exchanges dropped on Thursday despite news that Netherlands-based OCI is planning to spin-off its construction business and list it in Egypt and the United Arab Emirates.
The main EGX30 index fell by 0.79 percent with turnover reaching LE907.2 million ($126.8m).
OCI, a chemical maker controlled by Egypt's richest man Nassef Sawiris, said today it has begun preparations to separate its Engineering & Construction Group to a new company called Orascom Construction Limited. The move is good news for the Egyptian economy struggling to restore investor confidence after almost four years of political upheaval.
Stock market bellwether Commercial International Bank’s stock price fell 1.02 percent to close at LE50.33 per share. Egypt's largest listed real estate developer, Talaat Mostafa Group also fell 1.23 percent.
The telecommunications sector grew 0.17 percent with mobile carrier Mobinil rising 8.19 percent. The company said yesterday it may opt out of a potential land line business in Egypt unless the price improves and it gets more clarity on the terms, Reuters reported. Global Telecom Holding dropped 1.28 percent.
Beltone Financial shares jumped by 0.39 percent today after it grew 10 percent yesterday on receiving regulatory approval for a capital increase. The company plans to raise up to LE242 million in two stages to fund growth in its financial services businesses. During the first stage the company will issue free shares to existing shareholders instead of paying cash dividends to the tune of LE42 million.