Market report: EGX 30 rebounds on good results anticipations

Khaled Barakat , Monday 27 Dec 2010

Benchmark index ended reversed on Monday, its trend ending on a positive note

Market report

EGX 30 ended the day in the plus column, advancing 0.6 per cent to close at 6968 points.

“Blue chip stocks led the market to rise, as well as some positive corporate results", says Kamal Mahgoub, Managing Director of the Economic Community of Financial Advisors.

Orascom Construction Industries lead the big caps after withstanding the 270 level, broke out to 276.70 by the end of the day today. "The investors expect that the company will get more contracts in Qatar soon,” explains Equity Sales Trader at CI Capital Holding Company Omar Darwish.

“The worst performing of big caps was Orascom Telecom Holding (OT) as investors impatiently await the Vimpelcom deal result," Darwish adds.

Weather Investments, owned by the Sawiris familiy, said today it had received a revised offer from Vimpelcom to buy most of its telecom assets but was still studying the offer before taking a decision.

Vimpelcom announced in October the proposed acquisition of Weather assets, including a controlling stake in Egyptian mobile firm Orascom Telecom and all of Italian operator Wind.

Nationals dominated 86.1 per cent of total trading, while foreign and Arab investors accounted for 7.9 per cent and 5.8 per cent of trading, respectively.

Foreign investors' presence is still weak in the market because of the Christmas holiday.

Institutional traders went on a selling spree too, dominating 61.6 per cent of trading. Retail investors, on the other hand, tended to buy.

Tracking stock movement, General Company For Land Reclamation, Development & Reconstruction was the top mover to the upside, soaring up 4.6 per cent to LE42.8. It was followed by Union National Bank-Egypt “UNB-E”, which surged up 4 per cent, reaching LE 9.7.

SPINALEX stock leapt 3.23 per cent  during the first hour of today’s session, after hitting its highest level in nearly 8 months.

The stock took the lead among most actives with a trading volume of 3.471 million shares, exchanged through 421 transactions at an overall value of LE 5.545 million. This volume is the biggest since Nov. 14th.

The company’s financial results reflected constant growth in net earnings to LE8.347 million, compared with LE1.555 million in the same period a year ago.

At the other end, Suez Canal Bank Cairo was the biggest drag on the overall index, plunging - 6. 5 per cent, to LE9. It was followed by Suez Bags, which dropped by 4 per cent, down to LE 239.7.

Most  sectors were turned on a green note today , Real Estate being the most active, dominating 26.4 per cent, or over LE 39.3 million. The sector was followed by Financial Services excluding Banks, which controlled 20.9 per cent, or over LE 41 million.

The EGX 70 for small and medium business closed on a red note today, declining by 0.22per cent, to reach 723 points.

 

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