Egypt stocks stumble on Sunday's Sinai border attack

Hend El-Behary , Monday 6 Aug 2012

EGX30 slips 0.25 pct in Monday trading following Sunday border attack in Egypt's Sinai Peninsula

A trader works at the Egyptian Stock Exchange (Photo: Reuters)

Egypt stocks ended in the red on Monday on the back of Sunday's Sinai border attack and a wave of selling on the part of Egyptian and Arab investors. Foreign investors, meanwhile, represented net purchasers for the day.

Sixteen Egyptian soldiers were killed and seven injured on Sunday night in a deadly attack by an unknown group near Egypt's borders with the Gaza Strip and Israel.

Egypt’s Benchmark EGX30 index fell by 0.25 per cent to close the day's trading at 5,022 points. The broader-based EGX70 index, meanwhile, which tracks small- and medium-sized companies, fell by 0.72 per cent to alight at 449.85 points.

"The bourse fell sharply towards the beginning of the session, but later managed to recover slightly," said Eissa Fathy, vice president of securities at the Egyptian Chamber of Commerce.

"Foreign investors, apparently optimistic about Egypt's newfound political stability following the recent formation of the new government, managed to offset the adverse effect of last night's violence," he added.

"Trading in Orascom Telecom, which rose by 0.88 per cent for the day, also helped offset the day's earlier losses," noted Fathy.

Several other leading company shares, however, suffered in Monday's trading, including Orascom Telecom Media and Technology Holding, Commercial International Bank (CIB) and Egyptian financial group EFG-Hermes, which fell by 1.75 per cent, 1.20 per cent, and 0.65 per cent, respectively.

The day's winners, meanwhile, included Orascom Telecom Holding (OT), the Talaat Moustafa Group, Ezz Steel and Telecom Egypt, which rose by 0.88 per cent, 1.43 per cent, 2.71 per cent and 1.39 per cent, respectively.

Investment house Citadel Capital also rose by 0.32 per cent on Monday, along with luxury real estate developer Palm Hills, shares in which climbed by 2.44 per cent.

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