Market Report: EGX30 edges up 0.7 per cent despite profit-taking

Bassem Abo Al-Abbas, Monday 20 Feb 2012

The market saw the highest turnover for nearly seven months

Photo: AP

Egypt's main index the EGX30 closed in the green on Monday, rising by 0.7 per cent to 5,152.64 points as it survived the last minute profit-taking transactions by investors in the market.

"The market's benchmark was doing well at the first half-time of the session, but it started to decline when many foreign investors decided to take profits," said Ashraf Abdel-Aziz, head of institutional sales at Arabeya Online trading company.

Egyptian investors constituted the day's main buyers, scooping up a total of LE31 million in shares, while foreign investors sold some LE14 million more than they bought.

Market heavyweights Commercial International Bank (CIB) and Orascom Construction Industries (OCI), gained 2 per cent and 1 per cent respectively, while Orascom Telecom (OT) rose slightly by 0.4 per cent.

Property development leaders TMG and Palm Hills did similarly well, finishing up 0.6 per cent and 1 per cent respectively.

Palm Hills Developments announced that the court ruling on the New Cairo land case has been postponed until 4 April in a company statement sent to the Egyptian stock exchange on Sunday.

The telecommunication sector was amid the market losers, despite Telecom Egypt gaining by 1.5 per cent.

Mobinil and Orascom Telecom Media and Technology Holding [OTMTH] triggered the telecommunication sector's dip, as they tumbled 2 per cent and 2.6 per cent respectively on the day.

Both companies are involved in an imminent acquisition deal by France Telecom.

"Traders have fears about Mobinil's results," commented Abdel-Aziz. Results were not published at the time of publication.

Earlier on Monday, Belton's financial company expected a decline of 2.6 per cent in Mobinil's fourth quarter 2011 profits compared to the third quarter, to reach profits before taxes of LE‎839 million and a significant deterioration year-on-year of 24 per cent versus gross profits before taxes of LE1.1 billion in the fourth quarter of 2010.

Of the market's 187 listed stocks, 69 finished up on Monday, while 99 recorded losses in a day that saw total daily turnover of LE844.2 million.

"It was the highest turnover for nearly seven months" Abdel-Aziz told Ahram Online.

Broader indices on the other hand recorded a drop on Monday, with the EGX70 and EGX100 declining by 1 per cent and 0.4 per cent respectively.

"EGX70 was not able to continue as profit-taking exhausted it," said Abdel-Aziz.

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