Market report: Bourse up in 'dull' day

Salma El-Wardani, Bassem Abou Alabass , Sunday 5 Jun 2011

Institutions on a bullish trend, while Arab investors encouraged to buy following delay in resumed Iranian-Egyptian relations

Egypt's stock market rose 1.55 per cent, with the benchmark EGX30 index reaching 5,445.01 points at the close of Sunday's trade on the back of high activity by institutions.

All sectors ended in the green except for travel and leisure, with 142 of the listed 188 stocks rising.

Total market turnover was LE582.7 million.

A "dull performance," was how financial analyst Wael El-Nahas described this week's opening session.

"The market activity was too weak today with a very low trading turnover [at] less than LE400 million worth of traded shares," he added.

Today's top gainer was El-Obour Real Estate Investment, which dramatically increased by 428.72 per cent, followed by Wadi Kom Ombo Land Reclamation (9.53 per cent), Alexandria Flour Mills (7.85 per cent), while Remco for Touristic Villages Construction was the session's biggest loser, decreasing by 4.40 per cent. The list also included Beltone Financial Holding which declining by 2.23 per cent, and Torah Cement, falling by 1.7 per cent.

Egyptians who made up to 80 per cent of today's trading were net-sellers of LE12.5 million worth of securities.

Today's institutions made up 51.6 per cent of the market and were net-buyers.

"Institutions are keeping the balance of the market," comments El-Nahas. "They helped minimise losses on Thursday's session by a huge transaction implemented at the end of the session which pushed the market decline from 3.5 per cent, at the beginning of the day, to 2.6 per cent at the end."

"Today's jump is an extension to last session's purchase," he adds.

According to El-Nahas, today's buying activity on the part of Arab investors -- who bought LE28.4 million worth of securities -- was a result of the news that a resumption of Egyptian-Iranian relations is to be delayed.

Last week, Foreign Minsiter Nabil El-Arabi said after a meeting with his Iranian counterpart in the Indonisian capital of Bali that no plans are in the pipeline to restore diplomatic relations between Cairo and Tehran any time soon.

"Delaying plans to restore Egypt-Iran relations encouraged Arabs to buy," El-Nahas said.

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