Egypt's bourse up despite emerging market turmoil

Ahram Online
EGX

Egypt’s benchmark index on Sunday hit its highest level since May 2010, despite a downward turn in emerging markets.

EGX30 rose 0.4 percent to record 7436 points.

Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online that Sunday's rise, part of a recent positive trend in the market, has continued despite turmoil in regional markets due to most investors in the Egyptian bourse being Egyptian.

Recent weeks have seen demand fall in emerging markets, fueled by worries of the unexpected slowdown in China and the political crises in Turkey, Ukraine and Thailand. Most emerging market currencies plunged despite attempts by central banks to push up interest rates.

Turnover of listed stock registered LE831.4 million.

Egyptian investors -- who make up 85 percent of investors in the Egyptian stock exchange -- were net sellers with a net value of LE3.4 million.

More than 70 percent of listed stock were gainers.

“The market rose primarily on purchases of individual investors from Egypt and Arab nations who contribute more than institutions,” said Abdel-Aziz.

Shares for market bellwether Commercial International Bank (CIB) rested at LE33.62 per share.

Talaat Mostafa Group's (TMG) holding share was the only decliner among top companies in the real estate sector, losing 0.28 percent of its value to close at LE7.16 per share.

Palm Hills and Six of October for Development and Investments Company (SODIC) saw their shares rise by 0.32 percent and 2.53 percent respectively, closing at LE3.12 and LE23.5 per share.

Abdel-Aziz suggested that Sunday's performance, and the market's recent success, might not last.

“TMG was leading the sector and its share price decline, along with a sluggish end for the session, might indicate a wave of profit taking at the beginning of the following session,” said Abdel-Aziz.

Telecom Egypt inched up 0.13 percent to close at LE14.86 per share.

Broader index EGX 70 increased 0.95 percent to reach 590 points.