Market activity decreases Sunday ahead of Morsi's trial

Ahram Online, Sunday 3 Nov 2013

Investors were divided Sunday over their expectations of Morsi's trial set for Monday

stock market
File photo: Dealers are seen at the Egyptian stock exchange market in Cairo, Egypt (Photo: AP)

Investors traded in the market on Sunday, the day before Morsi’s trial was scheduled, with caution.

The market witnessed a modest rise in the Egyptian stock indices.

EGX 30, Egypt's main index, rose slightly by 0.08 percent Sunday, to register 6,186 points, while the broader index EGX 70 inched up 0.93 percent.

Trading volume was lower than the previous week, indicating division among investors over what to expect from Morsi's trial.

Morsi, who was ousted on 3 July after massive protests against his rule, is due to appear in court on Monday alongside 14 other senior Islamists and Muslim Brotherhood figures on charges of inciting violence.

Sunday's listed stock turnover registered LE345 million, a decline from last Thursday's LE459 million, Issa Fathy, vice-head of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

Egyptians and non-Arab foreigners continued to be net buyers, while Arab investors were net sellers to the value of LE4.6 million.

"The fact that the market has been rising slightly indicates that a considerable number of investors are confident in the interim government's ability to control the political situation in Egypt, but others were hesitant," added Fathy.

Most trading was focused on speculation over small and medium enterprise shares, a result of low trading levels.

This was apparent in the increasing shares of Egyptian Media Production City, which rose by 5.22 percent, as well as the increase in shares of Arabia Investments, Development Holding Company by 10 percent, said Fathy.

In the banking sector, Al-Baraka Bank Egypt was the only gainer, increasing by 0.18 percent, while Suez Canal Bank was the biggest loser, falling by 3.14 percent.

In the Construction sector, Orascom Construction Industries was one of nine companies to gain, inching up by 1.49 percent.

On the other hand, market bellwethers Commercial International Bank and Global Telecom dipped 1 and 0.2 percent respectively.

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