Egypt's main index edges down on profit taking

Ahram Online , Sunday 20 Mar 2016

Egypt's main index inched down on Sunday, in a sign of profit taking after a week of gains driven by the devaluation of the pound to close the gap between the official and unofficial exchange rates, says analyst.

Benchmark index, EGX30, fell 0.26 percent to 7,465 points and stock turnover amounted to EGP 1 billion.

"Egyptian investors are expectedly making profits," Ihab Saied, head of research at Cairo-based Osool for securities brokerage, told Ahram Online.

With 60 percent of trade, Egyptians were net sellers to the tune of EGP 750 million while non-Arab foreign investors were net buyers to the tune of EGP 616 million.

Foreign investors have been net buyers in the stock market since the central bank of Egypt devalued the pound by 14 percent last week in the hope of closing the gap between the official and unofficial exchange rates, said Saied.

Arab and other foreign investors had been unable to make up for the losses incurred due to the exchange rate gap, he added.

Blue chip, Commercial International Bank (CIB), inched up 0.67 percent to EGP 40.03 per share.

The Egyptian financial Group - Hermes, a leading investment bank, lost 4.36 percent of its share price to EGP 10.12 per share.

Orascom Telecom Media and Technology Holding (OTMT) fell 1.41 percent to EGP 0.69 per share while real estate developer, Six of October for Development and Investment Company SODIC gained 5.96 percent to EGP 10.5 per share.

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