Market Report: EGX30 rebounds slightly by 0.11 per cent

Youmna Abo Auf, Thursday 2 Dec 2010

The Egyptian stock market ended the trading week in the red, but only just, as the main index appeared depressed amid political uncertainty.

EGX30 ends the week with a rise of almost 0.1


The EGX30 ended the week to a slight rebound of 0.11 per cent, at 6,689 points, compared to 6789.4 at the beginning of the week. Total trading volume reached LE823.8 million.

"It is vague," said Hanfy Awad, an economic analyst. "Political worries, as the opposition withdraws from the elections, put pressure on the EGX30's performance" he added, as investors hope the polling ends smoothly. 

In contrast to the EGX30, the Dow Jones rose 2.27 per cent and the UK FTSE rose by 2.07 per cent.

The international surge was due to the meeting of the European Central Bank to consider aiding Eurozone countries, which reassured investors, encouraging them to start trading again. Today foreign investors were net buyers on the local market while locals and Arabs sold more than they bought.

Shares of 62 companies rose, while 113 lost. Individuals represented 65.86 per cent of trading, while institutions represented 34.13 per cent. Half of the sectors ended in the red. Food and beverages, real estate, and the telecommunications sectors were among the big gainers. 

Monsef Morsy, vice president of the research at Pharos, argues that the banking sector is stronger than it looks. "The banking sector is the real engine behind the stock market's stable performance along the year," he said.

"The banking sector recently has showed signs of potential growth reflecting the positive sentiment of investors regarding the Egyptian economy," added Morsy, pointing to high share prices among banks like Credit Agricole and NSGP Bank.

Meanwhile, the EGX70 rose by 0.09 per cent, reaching 734 points with a trading value of LE254 million. The EGX70 accounts for 11.80 per cent of total market capitalisation with a value of LE52.7 billion.

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