Egypt's main index up 0.53 pct on Wednesday as recovery slows

Ahram Online , Wednesday 26 Aug 2015

CIB up to LE47.94, real estate blue chips in green, Edita up 1.43 pct, Emaar Misr slides 2.73 pct

Egyptian broker gestures during a session at the Egyptian stock market in Cairo, Egypt (Photo: AP)

Egyptian stocks saw their recovery on slow Wednesday, as the benchmark EGX30 index rose by a modest 0.53 percent to close at 6,783 points.

The benchmark EGX30 index rose 0.53 percent to close on 6,873 points as the market continued slowly to rebound from a steep fall on Sunday, when it fell 5.42 percent to its lowest level since December 2013.

The main index was buoyed by blue chip gains as market leader and Egypt's largest private lender Commercial International Bank (CIB), which accounts for 22 percent of the index market cap, rose 1.27 percent to close at LE47.94.

In the real estate sector, Palm Hills Development Company gained 1.56 percent to trade at LE1.95, Six of October for Development and Investment Company (SODIC) rose 1.01 percent to LE8.97, and TMG Holding stayed put at LE6.9 a share.

Landline operator Telecom Egypt saw its share price slide 1.36 percent to LE6.55 a share.

Outside the main index, Edita food industries saw its share price gain 1.43 percent to close at LE31.82.

Emaar Misr fared less well, dropping 2.73 percent to trade at LE2.14 a share.

Arab and other foreign investors were net buyers to the tune of LE9.6 million and LE6.1 million, respectively, while local investors - who account for 77 percent of trading - were net sellers.

Oil prices stabilized on Wednesday after reaching six-and-a-half year lows this week after China's central bank cut rates and lowered the amount of reserves banks must hold to counteract the slowdown of its economy after a stock market plunge that roiled global markets.

Brent crude settled at $43.21 a barrel on Tuesday, after hitting $42.23 on Monday, its lowest since March 2009, Reuters reported.

Saudi shares were down 2.1 percent on Wednesday after going up 7.4 percent on Tuesday - a recovery from a 23 percent drop since the beginning of the month.

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