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Egyptian stocks resume rise on US Fed decision despite fresh domestic violence

Egypt's main index was up 0.26 percent on Thursday as investor appetites overcame news of violent morning raid near Cairo

Ahram Online, Thursday 19 Sep 2013

Egyptian stocks resumed their climb on Thursday despite news of a violent police raid on Islamist militants in a village near Cairo in the morning.

The main EGX30 index rose 0.26 percent on Thursday to sit at 5,516 points after investors reacted positively to the US Federal Reserve's decision to postpone cutting back of its bond-buying programme.
The US move was met with relief in global markets, Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online.

The Fed had been expected to start tapering off its $85 billion a month in bond-purchases in response to positive growth data for the US economy.

But on Wednesday Fed Chairman Ben Bernanke indicated that there was "no fixed calendar schedule" for scaling back the stimulus programme, after he had hinted that it would be done before the end of the year.
Regional markets reacted positively, with Dubai's main index rising 2.2 percent, Abu Dhabi's 1.2 percent, Kuwait's 0.5 percent, and Saudi Arabia's 0.3 percent.

Egyptian stocks saw a turnover of LE425 million on Thursday as Egyptian and Arab investors acted as net-buyers, while foreign investors were net-sellers to the tune of LE9.8 million.

"The market was not affected by the incident in Kerdasa this morning" said Abdel-Aziz, referring to security crackdown on the village of Kerdasa in the Giza district near Cairo earlier that morning.

Police forces arrested 51 people suspected of playing a role in last month's assault on the village police station by armed supporters of ousted Islamist president Mohamed Morsi, which killed 11 officers.

A senior police officer was shot dead and ten others injured during the operation on Thursday, state television reported.

Turnover was highest on largest-listed entity Commercial International Bank (CIB), which dropped by 0.6 percent.

Orascom Construction Industries and Orascom Telecom Holding were also in the red, losing 0.87 percent and 0.23 percent, respectively.

In the real estate sector, TMG Holding was the only decliner, falling 0.41 percent while Palm Hills Development Company rose 1.3 percent and Six of October Development and Investment (SODIC) inched up by 0.14 percent.

Investment bank Egyptian Financial Group-Hermes (EFG-Hermes) gained 0.81 percent.
The broader EGX rose 0.18 percent at the session.

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