Market report: EGX 30 rises 0.36% on good companies results

Khaled Barakat , Monday 20 Dec 2010

Good results pushed the main index up 0.36 per cent, to 6.912 points. The market awaits the fate of Orascom Telecom deal with Vimpelcom, which will be announced tomorrow

The egyptian Stock exchange rose 0.36 per cent
The egyptian Stock exchange rose 0.36 per cent

The EGX30, Egypt's main stock market index, closed today with a slight advance, up 0.36 per cent, at 6,912 points.

Many companies announced their positive results, with Memphis Pharmaceuticalsachieving the greatest volume of trading since May 2005. Heliopolis Housingrose by 4.9 per cent, reaching its highest price in 14 months.

“The news of the Orascom deal has significantly reduced the gains in the mid-market transactions, and may be a barrier until the announcement of the result tomorrow," said Hanafy Awad, a financial analyst for Watheeqa Securities Brokerage.

Orascom Telecom Holding (OTH) was the highest performer in terms of value, after trading 16,387 shares at an overall value of LE69.5 million.

Naguib Sawiris, chairman of OTH, revealed that an agreement has been made with Russia’s Vimpelcom, to determine the fate of their imminent consolidation deal tomorrow, Tuesday, 21 December.

The board of the Russian telecom group will hold a meeting tomorrow to discuss the outcome of a study conducted on the deal’s feasibility, and will then announce its final position on the merger.

“I except that the market will continue to climb, gaining more profit by the end of the week,” said Mohamed Elsebaie, the senior broker for HSBC Capital.

Led by the Commercial International Bank (CIB), all bellwethers headed north, except OTH.

Nationals dominated 59.3 per cent of total trading, while foreign and Arab investors accounted for 34.5 per cent and 6.1 per cent of trading, respectively.

Retail investors, who tended to sell, controlled 52.4 per cent of total trading, while institutional traders went on a buying spree, dominated 47.5 per cent of trading.

Memphis Pharmaceuticals was the top gainer with good results, up 12.3 per cent, to LE36.7. It was followed by Egyptian Chemical Industries (Kima), which surged with an 8.2 per cent increase, reaching LE335.4.

At the other end, Bisco Misr was the biggest drag on the overall index, plunging - 7.3 per cent, to LE29.5. It was followed by Suez Canal Bank, which dropped by 6 per cent, down to LE9.

Most sectors were turned green today, with financial services being the most active, dominating 29.6 per cent, or over LE130.5 million. The sector was followed by Telecommunications, which controlled 17.6 per cent, or over LE106.5 million.

The EGX 70 for small and medium business closed on a red note today, declining by 1.23 per cent, to reach 730 point.

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