Market report: Pan-Arabism rescues Egyptian Bourse, despite bad news

Bassem Abo Al Abbas, Monday 16 May 2011

The stock market sees pre-revolution levels of trading value, Arab investors cheer Arab League chief by a buying spree, and the market rejoices in the ouster of Ahmed Ezz, steel tycoon, from his post as Ezz Dekheila Chairman

Egypt's main index EGX30 continues its bullish trend with a 1.2 per cent rise to reach the strong level of 5,120 points.

"Ezz shares are the leader of the upturn of the market, after removing tycoon Ahmed Ezz from his post as a chairman of Ezz Dekheila", said Wael El-Nahas, financial analyst.

Accordingly, Ezz Dekheila gained 3 per cent up, as did Ezz porcelain which rose 4.1 per cent.

Orascom Telecom also announced a new CEO, which drove their shares  up 1.2 per cent. 

"OT is positively affected by changing its chief executive, Khaled Bishara, and appointing Ahmed Abou Doma in his place", El-Nahas commented.

TMG and Palm Hills resume moving up with 3.3 per cent and 3.5 per cent respectively. "This rise comes due to institutions' net buyer of LE 15.8 million which concentrate activity on leading shares" El-Nahas stated.

Of 180 listed stocks, 85 gained and 83 dropped as the market reached a total turnover of LE658.4 million.

Arabs are the only net buyers of LE10.8 million, in what seems a salute to the consensus Arab countries made by choosing Egypt's foreign minister Nabil El-Araby as the new Secretary General of the Arab League.

Egyptians and foreigners, on the other hand, are net sellers of LE7.2 million and LE 3.6 million correspondingly.

"Egypt Bourse chairman's tour in the Gulf stimulates Arabs to be net buyers," he added. Dubai's main stock market is working with the Egyptian Exchange to make it easier for companies to list their shares on both trading boards.

All sectors ended on a green note, except travel and leisure, and banking.

Broader indices EGX70 and EGX100 support the rise of Egypt's Bourse, albeight with smaller increases of 0.1 per cent and 0.5 per cent respectively.

The market ignored, however, the negative statement of an army official, that foreign exchange reserves would "erode in six months" if sit-ins and protests continue.

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