workers at Egypt's stock exchange market are seen in the trading hall in Cairo (Photo: AP)
Egypt’s stock market finished Thursday 1.12 per cent up, despite calls for another mass Friday of Rage tomorrow.
The EGX30 continued its upward trend for the second day, climbing to 5,411.83. Of 179 listed stocks, 99 gained and 66 declined in LE641,968 million worth of stock trades, with all sectors ending on a green note except for personal and household products.
"Tomorrow's 'Day of Rage' is completely different from 28 January," says Ashraf Abdul Aziz, head of institutions sales in Arabia Online Securities. "Tomorrow is just about some legitimate demands and is unlikely to turn violent, as before."
In the wake of the 25 January Revolution, the stock market was closed from 30 January and only reopened 23 March. Unprecedented demonstrations caused a 16 per cent drop in stock, a loss of around LE70 billion ($12 bn) in the last two sessions before closure.
The travel and leisure sector today showed most gains, recording an increase of 2.66 per cent. Real estate came in the second place making a total increase of 2.44 per cent, with the sector's heavyweights, Talaat Mostafa Group (TMG) and Palm Hills Development (PHD), increasing by 4.24 per cent and 2.84 per cent respectively.
However, "we can't say that the market has really regained confidence," explains Abdul Aziz. According to him, there are two reasons why TMG and PHD stocks recorded such gains. First, they are naturally rebounding from unprecedented lows. Second, institutions that had dumped their shares in these troubled companies are starting to re-trade.
Institutions recorded today a net-buying activity, comprising 65 per cent of the total trade volume. Unlike yesterday, Arab investors were net-buyers, making up 11.06 per cent of the market of LE38.2 million, while Egyptians and foreigners were net-sellers of LE30.2 million and LE8 million respectively.
"Unlike foreigners, Arabs seem to have more confidence in the Egyptian market," says Abdul Aziz.
The head of the Egyptian Stock Exchange, Mohamed Abdul Salam, has begun a tour of Gulf countries aimed at revitalising trading on Egypt's troubled stock market by attracting more Arab investment.
Top gainers included two main financial services companies: Beltone Financial Holding, which recorded a 4.92 per cent rise, and GMC Group for Industrial Commercial and Financial Investment, increasing by 4.14 per cent.
This continues the overall upward trend recorded by financial firms that were the biggest beneficiaries in yesterday's session as investment bank EFG-Hermes led the charge, gaining 7.33 per cent. Egyptian Financial and Industrial was close behind, up 6.84 per cent.
Short link: