Market Report: Turnover plummets on Egypt constitution rulings

Ahram Online, Sunday 10 Jun 2012

With two key decisions expected this week from Egypt's Supreme Constitutional Court, investors are watching and waiting as market dips slightly on weak trading

Egypt stocks
Major stocks slip into the red on 'political noise' (Photo: AP)

Egypt stocks ended Sunday's session slipping with one of the lowest daily turnovers ever, reflecting investors' fears amid political uncertainty.

The main index, the EGX30, dipped 0.4 per cent, recording 4.471.83 points in a session that saw a mere LE81 million in value traded in the day.

"I think investors are watching the coming crucial Thursday (14 June) which will see decided the destiny of the presidential candidate Ahmed Shafiq and the parliament too," said Eissa Fathy, vice-president of securities at Cairo's Chamber of Commerce, referring to Supreme Constitutional Court decisions that could see Shafiq eliminated from the presidential race and parliament disbanded.

Shafiq will learn 14 June if he is subject to the Disenfranchisement Law passed by parliament prior to elections that bans members of the former regime from seeking political office for 10 years. Meanwhile, the Supreme Constitutional Court will hear an appeal by the Supreme Administrative Court on the constitutionality of the elections law that led to Egypt's present parliament.

Fathy said the market is currently in a haze because of so much political uncertainty, but that once stability is regained, market performance will recover.

The broader EGX70 index declined slightly by 0.06 per cent.

Mostly of the heavyweight shares remained in the red, led by Commercial International Bank and Orascom Construction Industries as they dipped 0.2 and 0.4 per cent respectively.

Orascom Telecom saw losses of 1.3 per cent. Orascom Telecom for Media and Technology also dipped by 0.8 per cent, but reached the highest individual turnover of the day with LE9 million.

Mobinil declined by 2.4 per cent.

"Mobinil is sidelined by investors with its little number of shareholders who did not join the tender offer deal of France Telecom," Fathy told Ahram Online.

Meanwhile, Citadel Capital rose by 2.3 per cent to close at LE2.63 per share.

Trading on the Citadel stock was suspended mid-Sunday after exceeding the 5-per cent maximum for daily losses/gains due to the company's renewal agreement for a $2.6 billion loan for an oil refinery.

Ezz Steel and Talaat Mostafa Group were among the gainers as they rose by 0.8 and 0.5 per cent respectively.

Egyptians and foreigners were net sellers for the day by LE1 million and LE1.7 million respectively.

Out of 147 stocks traded, 68 tumbled and 50 saw gains.

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