Egypt stocks dip on Monday as investors continue profit taking

Ahram Online, Monday 24 Mar 2014

Telecom Egypt (TE) up 1.4 percent, thanks to recent announcement of fourth mobile license in the country

stock market
Traders work at the Egyptian stock exchange in Cairo August 18, 2013 (Photo: Reuters)

Egypt’s stocks were down the second session in row on Monday, as investors – particularly institutions – continued to sell in search of profits yielded from last week's high-performance trading.

The market benchmark EGX30 slipped 0.5 percent to record 8,405 points, despite the effort from domestic investors, 82 percent of which were individuals, who ended the session as net buyers with some LE16.1 million.

Due to active individual investors, the broader index EGX70 inched up 0.5 percent.

Foreign investors were net sellers with LE20.4 million, driving the heavyweight Commercial International Bank (CIB) down 1.4 percent to close at LE37.6 per share.

Telecom Egypt (TE), the country’s landline monopoly, rose 1.4 percent, hitting one of its highest prices per share at LE17.6.

Ashraf Abdel-Aziz, the head of institutional sales at Arabeya Online, attributes TE’s bullish trend to the interim government's recent announcement over a long-awaited fourth mobile license in the country, which will be operated by TE as early as June.

Real estate developers Palm Hills Development (PHD) and Talaat Moustafa Group (TMG) increased 0.2 percent each, closing at LE4.1 and LE8.4 per share respectively.

The property share Six of October Development and Investment (SODIC) plummeted 1.4 percent, registering LE29.1 per share.

Asek Company for Mining (ASCOM) was at the top of the Egyptian bourse’s list of gainers, rising by a whopping 8.6 percent to close at LE15.9 per share – up from LE14.5.

Ethiopia's mines minister, Tolossa Shagi Moti, announced recently that ASCOM had discovered the country's largest-ever gold ore reserve.

According to media reports, the discovery was made in the region of Benishangul Gumuz, southwest Ethiopia.

ASCOM has yet to confirm Moti's announcement or release any details of the find.

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