Egypt stocks falter as CIB falls while TE rises

Ahram Online , Wednesday 30 Mar 2016

Market bellwether Commercial International Bank dropped 2.2 percent to trade at EGP 38.49 per share amid Wednesday's downward slide

Egypt's stocks (Reuters)

Egypt stocks were down Wednesday as market heavyweight Commercial International Bank (CIB) and other blue chips were in the red.

The main EGX30 index fell 1.09 percent to close at 7,485 points as bellwether CIB saw its share price fall 2.2 percent to EGP 38.49.

The CEO of Egypt’s largest private lender, Hisham Ezz El-Arab, had told a local paper earlier this week that he was receiving “uncomfortable questions” regarding a recent Central Bank directive that will force him and other long-serving bank executives to leave their posts.

CIB has yet to issue an official response to the directive, issued by Central Bank Governor Tarek Amer, limiting the length of bank CEO terms to nine years.

Majority state-owned landline operator Telecom Egypt (TE), rose 5.4 percent to EGP 8.26. The company expects EGP 1.5 billion in deferred profits starting in April from mobile operator Vodafone Egypt, of which it holds a 45 percent stake, it said in a general assembly statement to the stock exchange Wednesday.

Vodafone Egypt owes TE EGP 4.5 billion in deferred profit payments, one source told Reuters. The government also replaced its representatives on the TE board of directors.

Global Telecom Holding rose 1.9 percent to trade at EGP 3.13.

Among real estate blue chips, Six of October Development and Investment Company (SODIC) was the only gainer, rising 2.89 percent to EGP 11.38 per share. TMG Holding dropped 1.7 percent to EGP 6.40 after announcing a cash dividend of EGP 0.145 per share.

(Official exchange rate: EGP 8.78 to 1 USD)

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