Egypt stocks decline 0.33 pct, expected to gain on IMF visit

Hend El-Behary , Wednesday 22 Aug 2012

Stock market falls slightly on Wednesday as investors take profits after Eid holiday

Egyptian Stock Exchange
A trader reacts next to a stock index board at the Egyptian Stock Exchange in Cairo (Photo: AP)

 

Egypt’s stock market closed slightly down Wednesday, mostly due to profit taking by foreign investors.

EGX30, the benchmark index, dropped by 0.33 per cent to finish the day at 5,161 points.

“It’s the Eid week; investors are trying to collect profits by selling,” said Mustafa Badra, a market expert.

Foreigners made sales of around LE11 million, while Egyptians and the Arabs were net-buyers with LE4.5 and LE6.5 million respectively.

Badra explained that not only profit taking drove foreign investors to sell; it was also because they remain doubtful about Egypt's economic recovery.

Furthermore, Mohamed Metwally, a market expert, told Ahram Online that an IMF loan would boost the market, as the country would regain the confidence of global financial organisations.

International Monetary Fund (IMF) Managing Director Christine Lagarde arrived in Cairo on Wednesday to reopen fresh discussions on a fiscal package, after year-long negotiations between Egypt’s government and the international financial organisation.

Egypt has formally requested a $4.8 billion loan from the International Monetary Fund, the presidential spokesperson said during a visit to Cairo by Lagarde.

Some investors are concerned about the 24 August demonstrations against the Muslim Brotherhood and President Mohamed Morsi.

Ezz steel saw the biggest losses, 2.68 per cent, while Commercial International Bank slipped by 0.56 per cent.

The telecommunication sector dropped as Orascom Telecom, Orascom Telecom Media, Technology and Telecom Egypt plunged by 1.38 per cent, 1.7 per cent and 0.73 percent respectively.

 However, Orascom Construction Industries remained unchanged on a modest volume of trade.

The EGX70, the index of small and medium sized companies, closed up by 0.78 per cent helped by Delta Construction & Rebuilding which sharply increased by 6 per cent.

 

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