Egyptian broker gestures during a session at the Egyptian stock market in Cairo, Egypt (AP)
Egypt’s stocks rose for the second consecutive session on Monday with the market’s benchmark pushed up by institutional buyout, ignoring the individual selling wave.
The main index for listed securities EGX30 increased 1.31 percent to 6,086 points, as foreign and Arab investors were net buyers to the tune of EGP 6 million and EGP 16 million respectively.
Local investors were net sellers of EGP 22 million worth of shares, bringing down prominent listed food industry companies Edita (sold at EGP 28 per share) and Juhayna (sold at EGP 6.77 per share) to slip 1.27 percent and 0.15 percent respectively.
“Individuals were net sellers due to some profit taking operations on the market gains last week,” said Eissa Fathy, the vice head of the securities division at the Cairo Chamber of Commerce.
Fathy said that the televised interview with Central Bank of Egypt (CBE) governor Tarek Amer on Sunday had a positive echo on traders, especially when he revealed plans to float the United Bank of Egypt, in which CBE holds a 99 percent stake, in an initial public offering.
Amer also added that Egypt is not going to float the local currency, given the current US dollar shortage, until FX reserves reach at least $25 billion so as not to negatively affect prices.
Out of 161 shares listed for the day, 86 saw gains and 37 declined in a session that witnessed a daily turnover of EGP 424 million.
The heavyweight listed Commercial International Bank upped 1.63 percent to close at EGP 33.60 per share.
Global Telecom Holding rose 1.98 percent to register 2.06 per share.
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