A trader reacts next to a stock index board at the Egyptian Stock Exchange in Cairo (Photo: Reuters)
The second round of parliamentary elections didn’t have as much influence on Egypt’s stock market as the first round did. On the second day of the second round, the benchmark EGX30 index remained almost unchanged, losing only 0.02 per cent.
Changes on broader indices were also insignificant with the EGX70 gaining 0.04 per cent and the EGX100 falling 0.10 per cent. Following the first phase of Egypt’s elections, which began on 28 November, the stock market surged five per cent.
“We should not expect a market surge every time elections go right, now it has become a normal thing. However, the market can fall if negative things occur during elections”, says Ashraf Abdel Aziz, head of institutional sales at Arabeya Online Securities.
Abdel Aziz believes the market is waiting on the economic decisions the new government will make. “It is normal not to see big changes in the market in the current days. Investors are waiting to see the solutions the new government will propose on issues like the budget deficit, the maximum and minimum wage, and strikes and sit-ins in factories," explains Abdel Aziz.
Generally, no special events or large transactions influenced the market today.
Market turnover was LE191.8 million. Big caps Orascom Construction Industries (OCI) and Commercial International Bank (CIB) gained respectively 0.51 per cent and 0.23 per cent. Telecom Egypt, another blue chip, lost 0.29 per cent.
From the day's 165 listed stocks, just 58 gained value while 78 declined and 29 remained unchanged.
Nine sectors out of 17 closed in the red and five remained unchanged. Only banks, personal and household products and construction and materials gained
Top gainers were Misr Hotels, Egyptian International Tourism Projects, Olympic Group Financial Investments, National Societe Generale Bank (NSGB) and Torah Cement.