Market Report: Egypt stocks slightly gain, volumes drop

Ahram Online, Thursday 3 Nov 2011

Trade was slow on the Egyptian stock exchange before the Islamic feast which starts Sunday, though gains were made

(Photo: Reuters)

The Egyptian bourse gained on the last day of trading before the Eid Al-Adha holiday with stocks across the board recording positive results.

Trading volume, however, recorded a low of LE208 million ($34 million) as trading slowed due to the coming vacation. Nonetheless, the EGX30, the market's main benchmark, gained 0.79 per cent to close at 4,424 points.

"No one is keen to either buy or sell in the market because settlement will take place when the exchange reopens on Wednesday," says Mostafa Badra, a capital market expert.

Badra, however, explains that weak trading volume remains a chronic disease affecting Egypt's stock exchange.

The bourse will be closed from Sunday, 6 November, for three days until Wednesday, 9 November, marking celebrations for the Islamic feast.

Out of 181 traded shares today, 135 gained while 25 finished in teh red. Telecom Egypt, Mobinil, EFG Hermes and Citadel Capital were among the major winners growing 2.08, 1.7, 2.52 and 2.8 per cent respectively.

Credit Agricole Egypt recorded a surprising 3.8 per cent gain to close at LE9.02 per share, despite announcing a net profit fall of nine per cent to LE242.9 million ($40.7 million) from LE322.2 million in the first nine months of 2010.

The broader index, the EGX70, reinforced its run gaining 0.89 per cent to settle above 508.76 points.

All sectors ended in the black on Thursday, with basic resources and financial services being the biggest gainers at 1.28 and 1.66 per cent, respectively.  

Ezz Dekheila and Ezz Steel, the two companies associated with former National Democratic Party strongman Ahmed Ezz, gained 2.32 and 1.13 per cent. The steel magnate was referred to Cairo Criminal Court today after being charged with money laundering.

Foreigners made up 27.2 per cent of total trading, net selling at LE16.8 million. "The performance of European markets in the coming week is unpredictable; it could have serious effects on Egypt as foreign activity in the local market could seriously shrink," Badra said.

European markets went into mayhem after the Greek government decided to put the latest 130 billion Euro bailout package to a referendum.

Egyptians made up 68 per cent of total trading, net buying at LE18.7 million. 

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