Market Report: Egypt’s bourse slightly declines, investors reticent on Eid vacation

Bassem Abo Alabass, Wednesday 2 Nov 2011

Egypt’s benchmark EGX30 slightly slipped 0.04 per cent, recording 4.389.45 points on Wednesday’s session, unlike the broader indices which went up, led by the EGX70

Egyptian Stock Exchange
Traders work at the Egyptian Stock Exchange in Cairo (Photo: Reuters)

Foreigners were the only net seller with LE6.8 million which impacted heavyweight shares such as Orascom Construction Industries (OCI) and Commercial International Bank (CiB), both down 0.4 per cent.

"The EGX30 was almost at a stalemate today as big investors and foreigners were hesitant to make new positions ahead of the long Eid (Islamic feast) vacation," says Mohamed Metwally, a trader at Prime Securities.

Metwally explained that the EGX70 has been dropping throughout the last week, so share prices have become cheap encouraging retail investors to make new positions.

The bourse is scheduled to shut down for three days from Sunday through Tuesday, to mark the occasion of Eid Al-Adha, an annual Islamic holiday.

Telecom Egypt and EFG-Hermes followed the dropping blue-chips and tumbled 0.3 per cent and 0.08 per cent respectively.

Mobinil was among the few shares gaining in the EGX30, up 0.95 per cent to close at LE101.23.

Today, Naguib Sawiris, head of the Sawiris telecommunications and construction empire, confirmed to Ahram Online that he is in discussion with partners to help finance a bid for Orange Switzerland, the France Telecom mobile phone unit.

Sawiris declined to name the financial funds he is in discussion with, and said he had no plans to sell or swap his stake in Mobinil, his Egyptian joint venture with France Telecom.“It’s completely farfetched,” said Sawiris, dismissing any such suggestion.

Juhayna Food Industries plunged 1.03 per cent as it is still affected by the dairy monopoly case that will be transferred to the attorney general on demand of minister of trade and commerce, yielding to pressures from the Milk Producers’ Association (MPA).

A couple of weeks ago, the government opened an investigation into accusations of monopolistic practices in Egypt’s three biggest distributors of dairy products, controlling around 80 per cent of the local market.

Elsewhere, property shares saw a rise for the second consecutive day as Palm Hills Development upped by 1.4 per cent.

Talaat Mustafa Group (TMG) and SODIC rose 0.8 per cent and 0.2 per cent respectively.

From 177 listed stocks, the majority of 177 shares gained and 38 declined in a session that saw a turnover of LE265.4 million.

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