Traders in action on Egypt's Bourse (Photo: Reuters)
Egyptian stocks finished in the red on Monday with the EGX30 benchmark losing 0.63 per cent to reach 5,104.41 points.
The financial analyst Wael El-Nahas dismissed the suggestion that the clashes in Abbassiya might have had a negative impact on the market.
“These events will not have a big impact on the market as it is already struggling for other reasons,” El-Nahas says.
“The market is under pressure from the crisis in Europe and the United states as well as the security situation in Egypt,” he adds.
Banking is the only sector which stayed in the safe (green) side with high-cap CIB surging by 0.26 per cent.
“Investors are confident of the solidness of the Egyptian banking sector, especially after the loan the National Bank of Egypt’s acquired from abroad,” El-Nahas told Ahram Online.
From 182 listed stocks, only 61 gained and 111 declined in a session that saw a turnover of LE 402.7mn.
The foreign stake in the market still edging up by 33.4 per cent, they are net buyers of LE 26.4mn, as opposed to the Egyptians net seller of LE 27.6mn.
“The absolute majority of investors trading in the bourse now are speculators; even foreign investors are looking for quick profits, refraining from taking long term positions,” El-Nahas says.
High-cap Telecom Egypt gained 0.7 per cent. But its two companions in the telecoms sector fell.
“This has become a normal trend for Telecom Egypt this time of year. Their financial year ends in June, and they will announce dividends soon that push their stock price upwards,” El-Nahas explains.
Orascom telecom marginally dropped by 0.5 per cent and Mobinil continues its dip with 1.6 per cent.
“Mobinil is definitely still affected by the boycott campaigns; I expect further plunges in its stock price,” says El-Nahas.
Market heavyweights showed decline started with Orascom Construction Industries [OCI], which recorded a loss of 1.2 per cent, although it achieves the highest turnover in the session with LE 46.7mn.
TMG was down by 0.9 per cent, SODIC and Palm hills also plunged by 2.3 per cent each.
Torah cement saw a downturn by 2.3 per cent, reflected by protests on Saturday in front of the Cabinet headquarters demanding the implementation of court orders concerning their financial demands. The workers also threatened to stage a sit-in and strike in the two companies if their demands are not met.
The broader indices EGX70 and EGX100 also saw declines by 0.31 and 0.61 per cent respectively.
The Egyptian bourse has halted trade in the shares of AJWA Group for Food Industries and Ezz Deklia for Steel for failing to comply with its demand for full financial statements.
On 6 July, the bourse gave the two companies 15 days to provide consolidated and non-consolidated financial statements.
With the deadline having passed, trade in the two companies has been suspended indefinitely.