Market report: EGX 30 crosses the 7000 barrier for first time in 7 months

Khaled Barakat , Tuesday 28 Dec 2010

Big caps push the market to a record level despite a low turnover of LE750.3 million

Market report


EGX 30 ended its mid-week session in the plus column, advancing 0.85 percent to close at 7027 points. The Institutions buying trend continued for the second day, dominating half of today’s trading.

“Big caps succeeded to push the Egyptian Stock Exchange's main index EGX 30 in overcoming the barrier of 7000 points,” said Hanafy Awad, financial analyst in Watheeqa Securities Brokerage.

EFG-Hermes rose 1.5 percent. Commercial International Bank (CIB) gained 0.2 percent while Orascom Construction Industries (OCI) rose 1.8 percent.

More than one big transaction on Ismailia National Industries (Fudeco) led its share price to soar, ranging from LE22.8 to LE22.93. In total, a group of investors bought a stake of 3 million shares during the middle of the day, bringing the total value of the deal to LE67.8 million. “This transaction led the market up too,” adds Awad.

The market ignored the latest episode in the dispute between Orascom Telecom (OT) and the Algerian government. OT shares maintained its price level despite the company's earlier announcement concerning its revenue generator unit in Algeria.

"We will resort to international arbitration to resolve the problem of the Djezzy unit and will start the procedures soon," CNBC Arabia quoted Naguib Sawiris on Tuesday as saying.

Foreigners are back to their normal levels of 20 percent and were net buyers.

Nationals dominated their average 72.2 percent of total trading. Turnover was at LE750.3 million.

Tracking stock movement, General Company for Land Reclamation, Development & Reconstruction was the top gainer, soaring 7.9 percent to LE46.2. It was followed by Arab Ceramics (Aracemco) which surged 4 percent to  reach LE29.8.

At the other end of the scale, Alexandria New Medical Center was the biggest drag on the overall index, plunging 5. 7 percent to LE47. It was followed by Modern Shorouk Printing & Packaging, which dropped by 3.9 percent taking the share price down to LE 17.3.

All sectors were turned on a green note today with Food and Beverage being the most active, dominating 22.2 percent, or over LE16.2 million of transactions. The sector was followed by Real Estate, which controlled 14.3 percent, or over LE 39.6 million.

The EGX 70 for small and medium business closed on a red note for the second consecutive session, declining slightly by 0.02 percent to reach 723 points.

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