EGX 30 resumes rise to reach 5,704 pts

Ahram Online, Thursday 26 Sep 2013

Stocks rally after profit-taking and turnover strengthens as investors react to lower interest rates and improved security

File photo, workers at Egypt's stock exchange market are seen in the trading hall in Cairo, Egypt. 13 April, 2011 (Photo: Reuters)

Egypt's benchmark index was back in the green on Thursday, gaining 0.68 percent to sit at 5,704 points.

After hitting a six-month high earlier this week, the EGX30 dipped slightly on Wednesday due to profit-taking by investors.

Turnover also made a comeback on Thursday, as the value of listed stock traded reached LE562 million after having fallen to a modest LE385 million on Wednesday.

The rebound was due to the recent lowering of interest rates by Egypt's central bank, which drove investors towards the equity market, according to Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce.

Fathy told Ahram Online that he expects the market to continue its upward trajectory in the coming period, "so long as the security situation remains calm."

Egypt has experienced a violent summer since the popularly-backed ouster of Islamist president Mohamed Morsi by the country's armed forces in July.

A state of emergency has been in force since mid-August, as the interim government cracks down on Morsi supporters and armed militants under the cover of a night-time curfew, which has been progressively shortened.

On Saturday, the curfew was reduced to just five hours – from midnight to 5am – every day of the week except Friday, a holiday which is traditionally rife with demonstrations and unrest.

There were 133 gainers on Thursday out of 178 listed stocks, including a majority in the main EGX 30 index. Egyptian investors were the main net-buyers at LE36.9 million, followed by Arab investors, while other foreigners were net-sellers to the tune of LE42.9 million

Market bellwether Commercial International Bank (CIB) inched up 0.03 percent, while leading investment bank Egyptian Financial Group-Hermes Holding Company rose 0.89 percent.

Global Telecom Holding, formerly Orascom Telecom Holding, rose 0.45 percent.

Palm Hills Development Company was the only gainer in the real estate sector, with TMG Holding remaining flat and Six of October Development & Investment (SODIC) falling 0.27 percent.

The broader EGX70 index gained 1.17 percent.

Search Keywords:
Short link: