Egypt bourse inches down on profit-taking

Ahram Online , Wednesday 27 Apr 2016

The slide followed a drop of 1.2 percent in the share price of bellwether CIB from a 10 month high yesterday


Egypt’s bourse inched down Wednesday as investors cashed in on recent gains.

The main EGX30 index slid 0.29 percent to 7,863 points Wednesday after having hit its highest level in over nine months in the previous session.

The downturn is due mainly to the slump in the share price of market bellwether Commercial International Bank, according to Mohamed Radwan, executive director of Cairo-based Pharos Securities.

The largest private sector lender in Egypt saw its share price slide 1.2 percent to EGP 45.64, after outperforming the market in previous sessions.

“With CIB trading at a 10 month high yesterday, it was more or less an invitation for investors to dump the stock,” Radwan said.

The slump was unrelated to the bank backtracking on the appointment of former Central Bank Governor Hisham Ramez as vice chairman and managing director.

The rest of the index was affected by purchasing power fading away from CIB, said Radwan, and by profit taking as investors sought to cash in on recent gains.

In the real estate sector, Palm Hills Development Company fell 1.48 percent to EGP 2.66, and Emaar Misr for Development slid 2.19 percent to EGP 2.69, while TMG Holding, the second largest listed stock, rose 1.34 percent to EGP6.82.

Majority state-owned Telecom Egypt fell 2.67 percent to EGP 6.55.

The Egyptian Stock Exchange also announced the signing or a partnership agreement with Bahrain Stock Exchange, to faciliate dual listings and provide technological assistance to the latter. 

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