Egypt stocks edged into the green on the first trading day in 2012 as investment funds make new positions; turnover, however, plummeted below the LE100 million level.

The Bourse’s main benchmark, EGX30, gained 1.59 per cent to close at 3,679 points. The broader index, EGX70, saw milder gains of 0.77 per cent.

“The beginning of the year is usually characterised by funds buying some stocks they have sold by the end of the year for tax purposes, and this might explain today’s gains,” said Issa Fathy, vice chairman of the securities division in Cairo’s Chamber of Commerce.

Fathy explained that the political situation, which has not seen any major improvements since the parliamentary elections, continues to affect turnover.

“The market needs an injection of fresh funds for turnover to increase, and the political climate is very discouraging to investors.”

Officials, Fathy explained, need to implement policies to encourage investment in the stock market. “The securities industry in Egypt is going through a very tough time, from brokerage companies to investment and clearing houses. An official intervention is due.”

Tuesday’s session, however, might carry some good news for the Bourse, as Orascom Telecom (OT), one of the largest, most liquid shares, will resume trading. OT had suspended trading on its stocks pending its split into Orascom Telecom Holding (OTH) and Orascom Telecom Media and Technology.

The introduction of the two new stocks is expected to boost turnover, which have plummeted LE85.4 million ($14.2 million) on Monday, one of its lowest levels in ten years.

Foreign investors’ made up 17 per cent of total trading and were the only net sellers at LE2.5 million. Egyptian investors dominated turnover at 80 per cent, but net buying at LE1.2 million.

Out of 156 traded shares, 117 closed in the green while 20 dropped. The largest shares in the market, Orascom Construction Industries (OCI), Commercial International Bank (CIB) and Suez Cement gained 2.97, 1.66 and 3.81 per cent.

Telecom Egypt (TE), the landline monopoly, saw its shares gain 0.53 per cent to close at LE13.28 per share as its disputed CEO announced he will leave his post on November 18. Along with the company’s board of directors, Mohamed Abdel Rehim, has been the target of TE’s workers’ anger and dissatisfaction, which translated into large labour protests last October. His resignation might signal a period of stability in the company.