Egypt indices set to move sideways ahead of constitutional referendum

Ahram Online, Tuesday 10 Dec 2013

Main EGX30 index slides 0.1% and broader EGX70 gains 0.2% among low trading volumes as investors eye national poll with apprehension

Egyptian stock exchange
A general view of the Egyptian stock exchange in Cairo August 18, 2013. (Photo: Reuters)

Egypt's main index slid 0.11 percent on Tuesday while the broader EGX70 rose 0.21 percent among relatively low trading volumes.

"It is expected that this sideways trend and low turnover will continue until after the constitutional referendum, as investors are anticipating possible violent outbursts before and during the voting," Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

A draft of Egypt's new constitution was submitted for approval last week by the constituent assembly to interim President Adly Mansour, who is expected it put the document to a popular referendum in January.

"The fear is that the Muslim Brotherhood and supporters of ousted president Mohamed Morsi will resort to violence to disrupt the referendum on the new constitution," Fathy said.

The new constitution is due to supersede a previous document drafted by an Islamist-dominated assembly in November of last year.

Egyptian investors were net-buyers on Sunday, to the tune of LE18.5 million, followed by Arab investors, while non-Arab foreigners were net-sellers for LE20.6 million.

In the EGX30, blue chip Commercial International Bank (CIB) fell 0.69 percent, Global Telecom Holding 0.44 percent, and investment bank EFG-Hermes 0.36 percent.

Gainers were Ezz Steel, up 0.83 percent, real estate player Six of October Development and Investment (SODIC), up 2.11 percent, and automaker GB Auto, which climbed 3.13 percent.

Total turnover of listed stocks stood at a modest LE283.5 million at the close of the session.

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