Market Report: Egypt's market closes in red after Easter holiday

Ahram Online , Tuesday 17 Apr 2012

Foreign investors - spooked by country's uncertain political situation - stress market through their sales

Stock Market
Photo: Reuters

Egypt's stocks lost 1.19 per cent of their value on Tuesday after 4 days of holidays to close at 4,678.98 points.

The market saw a small daily turnover of LE262.7 million on Tuesday, with nearly 54 per cent (LE142.6 million) via the telecom sector.

"The indices failed to meet all expectations of analysts about Tuesday’s session; they expected it to close in green due to the mandatory tender offer from France Telecom to purchase 100  per cent of the issued capital of Mobinil at LE202.5 per share," said Mustafa Badra, market expert.

Egyptian stocks saw green in last week's two final sessions, bolstered by the prospect of an imminent conclusion to France Telecom's long-awaited takeover of local mobile operator Mobinil.

Egyptians and Arabs were net-buyers, recording net inflows of LE 27.646 million and LE 7.115 million respectively. Foreigners were net sellers to the tune of LE34.761 million.

“Foreign investors stressed the market through their sales. They do not feel certainty about the political situation in Egypt, especially after the verdict of excluding prominent presidential contenders,” Badra told Ahram Online.

The Supreme Presidential Electoral Commission (SPEC) disqualified on Saturday 10 contenders from Egypt’s anticipated presidential elections, including Salafist Hazem Salah Abu-Ismail, ex-intelligence chief Omar Suleiman and leading Muslim Brotherhood figure Khairat El-Shater.

Orascom Telecom and Media Technology (OTMT) lost 0.70 per cent while Mobinil remained almost unchanged, gaining 0.01 per cent after leading the surge during the last two sessions of the past week. However, the two companies registered the highest turnover with LE 72.16 and LE31.6 million respectively.

Apart from Mobinil, another blue chip that ended the day in the green was Telecom Egypt, which gained 0.65 per cent.

“Investors starts to change their positions from Mobinil to Telecom Egypt as Mobinil will not be listed anymore after the approval of the 100 per cent mandatory tender offer,” Badra commented.

Commercial International Bank Egypt (CIB) lost 1.74 per cent.

Out of 165 listed stocks, 133 declined and 24 gained value. Biggest market cap Orascom Construction Industries lost 1.05 per cent.

The broader EGX70 index lost 1.8 per cent by the closing bell.

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