Last Update 0:7
Sunday, 20 June 2021

Presidential address cushions stock market fall after weekend of violence

Main index closes with 0.2% loss after falling as far as 1% in first session following Cairo bombings, as interim president announces crackdown on terrorism, upcoming presidential poll

Ahram Online, Sunday 26 Jan 2014
Stock market
Traders work at the Egyptian Stock Exchange in Cairo August 11, 2011 (Photo: Reuters)

Egypt's indices suffered minor losses on Sunday as a presidential address reassured investors after a weekend marked by terrorist attacks and political clashes.

The main EGX30 index picked up towards the end of the session after dropping by over 1 percent, to record a 0.22 percent loss for the day, closing at 7,217 points, while the EGX70 closed with a 0.19 percent loss.

The upturn was triggered by a televised speech from interim President Adly Mansour, which calmed investor jitters, Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce, told Ahram Online.

"We're determined, both the people and the state, to root out terrorism," said Mansour, adding that extraordinary measures would be taken if needed.

The president's stern words came after four explosions struck police institutions and checkpoints in Greater Cairo on Friday, killing six and injuring at least 80.

Saturday, which marked the third anniversary of Egypt's 25 January revolution which toppled long-time strongman Hosni Mubarak, was marked by clashes between protesters and security forces which left 49 dead. An explosion also hit a Central Security Forces (CSF) camp in the city of Suez leaving 16 injured. 

In his speech Mansour announced that presidential elections would take place before parliamentary elections. The political road map laid out last July had previously stated that parliamentary elections would occur first.

"The president's speech was firm and reassuring to investors, as it promises to crack down on terrorism and go ahead with elections," said Fathy.

Daily turnover was strong despite the turmoil, recording LE731 million.

Egyptians were the main net-buyers, purchasing a net LE32.9 million worth of shares, while Arab investors were net-sellers, to the tune of LE40.9 million. Other foreign investors were also net-buyers for a net of LE7.9 million.

Market bellwether Commercial International Bank (CIB) slid 0.12 percent to trade at LE32.86, while investment bank EFG-Hermes dropped 0.18 percent to record LE10.8 per share.

Real estate firm Palm Hills Development Company fell 1.05 percent to LE2.83 and TMG Holding 1.41 percent to LE6.98 per share.

Eastern Tobacco slid 0.01 percent to LE120 a share. The company, which has a monopoly on the manufacture of tobacco products in Egypt, announced a 9.1 percent drop in its net profits for the first half of its financial year ending in December.

The company's profit dropped to LE371.6 million ($53.38 million) in the first six months of the year, compared to LE408.7 million for the same period of the previous year.

Metallurgical giant Ezz Steel fell by 1.4 percent to trade at LE6.98 per share.

Property developer Six of October Development & Investment (SODIC) rose 0.13 percent to LE22.37 per share.

Global Telecom Holding gained 1.38 percent to close at LE5.16 per share.


Short link:



© 2010 Ahram Online.