Market Report: Telecoms drag down EGX30 index

Khaled Barakat , Wednesday 15 Dec 2010

Egypt's main stock market index dropped by 0.76 per cent to dip below 7000 points

the egyptian stock market fell 0.76 per cent
the egyptian stock market fell 0.76 per cent


The EGX30, Egypt's main stock market index, dropped 0.76 per cent to 6,943 points, breaking a run of five consecutive rises.

Djeezy, Orascom Telecom's unit in Algeria and one of its main revenue earners, was put under scrutiny today as it received a final notification of corporate back taxes due for the years 2008 and 2009, estimated at $230 million.

The news led Orascom stock to decline in early trading, closing on LE4.35, a loss of 1.58 per cent.

Nationals, who dominated around three quarters of transactions, headed towards offloading their equities. They sold shares to a total value of LE1 billion and purchased shares to a value of LE942 million.

Shares in Bisco Misr was the top gainer, soaring by 8.7 per cent to LE 31.8. This was followed by Arab Pharmaceuticals, whose shares surged by 6.6 per cent to LE50.3.

Sharm Dreams Company for Tourism Investment was the biggest drag on the overall index, plunging by -5.6 per cent to LE15.25. It was followed by Universal for Paper and Packing Materials (Unipack), which dropped 5.2 per cent to LE12.5.

All sectors fell, with construction and materials dominating at 19.7 per cent of trade followed by the telecoms sector with 15.3 per cent.

Most of the consolidated financial figures announced were negative. "The equity of Talaat Mostafa declined significantly over recent trading,“ said Kamal Mahgoub, managing director of the Economic Community of Financial Advisors, commenting on the decline of the construction and materials sector during the last week.

The EGX70 declined for the third day by 1.4 per cent, reaching 738 points with a trading value of LE273.7 million. The EGX70 accounts for 11.9 per cent of total market capitalisation, with a value of LE54.4 million.

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