Egypt stocks in the green as heavyweight shares gain

Ahram Online, Monday 12 Aug 2013

General market back in the green amid high turnover due to re-balancing of MSCI index following OCI's exit; with EGX30 mostly in the red

Egypt stocks
Traders work at Egypt's Stock Exchange in Cairo (Photo: Reuters)

Egypt's main index was in the green on Monday, buoyed by major stocks, up by 0.39 percent to sit at 5,638 points at the first trading session after a four-day Eid Al-Fitr holiday, marking the end of Ramadan.

Total turnover was high, reaching LE584.5 million ($83.6 million) as Egyptians were net-buyers, to the tune of LE84.2 million ($12.05 million), while foreigners, who accounted for some 36 percent of the market, were net-sellers.

"The high turnover is a result of a re-balancing of the MSCI index, with the proceeds from Orascom Construction Industries' (OCI) exit from the index moving into Commercial International Bank (CIB), TMG Holding, Egypt Telecom and Orascom Telecom (OT)," CIBC Senior Manager  Ashraf Akhnoukh tells Ahram Online.

OCI, formerly the Egypt's largest listed company, was recently de-listed from the EGX 30 main index after Dutch parent company OCI NV acquired over 97 percent of its shares on the Egyptian stock exchange in a tender offer concluded on 28 July.  

Blue chip CIB gained 1.62 percent, property share TMG Holding 2.41 percent, while Telecom Egypt was up by 0.65 percent and OT remained unchanged.

Turnover was also high on Pioneers holding, reaching LE 73.3 million, due to an internal cross, according to Akhnoukh.

The majority of the EGX30 was in the red, however, including real estate giant Palm Hills Development Company, which shed 1.22 percent and Egyptian Financial Group-Hermes Holding Company, which fell 1.42 percent.

The broader EGX70 index was down 0.52 percent.

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