Egypt stock market slows after week of high records

Ahram Online , Thursday 24 Oct 2013

Egyptian stocks rise slightly amid Egyptian investor buying; Analysts remain optimistic

Stock Market
Egyptian exchange slow down over profit making. (Photo:Reuters)

Egyptian stocks achieved mild gains on Thursday, reversing Wednesday's downward turn. 

The main index, EGX30, rose by 0.09 percent to record 6171.2 points. 

Egyptian and Arab investors ended the day as net buyers, recording a net flow of LE5.5 million and LE3.05 million, respectively, while foreigners ended the day as net sellers. 

The daily turnover of the listed stocks continued a decrease, recording some LE497.7 million. 

The mixed note this week does not worry analysts, as they believe the overall market performance is positive. Egypt's stocks hit a two-year high on Sunday, the first week day after a long holiday. Earlier this week, turnover hit LE750 million.

The market has ignored the week's shaky security situation, and was influenced by neither a Sunday shooting at a Cairo church wedding nor a Saturday car bomb explosion outside an army intelligence building in Ismailia, northeast of Cairo.

"The Bourse's upswing is expected, as investor decisions are no longer impacted by politics; they only eye profits," said Eissa Fathy, vice head of the securities division at the Cairo Chamber of Commerce.

Analysts see the downwards trend on Wednesday and the mixed gains on Thursday as routine profit making.

The market's bellwether Commercial International Bank gained 0.61 percent, while Global Telecom Holding rose by 021 percent.

Other big cap Telecom Egypt lost 1.2 percent. 

The real estate sector topped the market in terms of turnover. The sector closed on a positive note with Palm Hills Development Company and El Kahera Housing gaining 1.92 and 1.5, respectively, while T M G Holding lost 0.54 percent.

Ezz Steel, Egypt's biggest steel maker, gained 1.7 percent after announcing that its first half profit jumped 269 percent year-on-year to LE302 million ($43.8 million).

Out of 177 stocks traded over the day, 72 gained and 79 declined.

The broader index EGX100 lost 0.18 percent. 

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