Egypt Stock Market Stages Partial Recovery

EGX

VENTURES AFRICA – Egypt’s stock market staged a partial recovery Wednesday’ late trade following an upsurge in uncertainty and violence hit major Egyptian cities, particularly Cairo, Port Said, Suez and Ismailia.

This is according to a news website, Ahram Online, which added that Egypt’s main benchmark EGX30 gained 1.47 percent to close at 5.576 points. The broader EGX70 gained 1.46 percent.

Earlier this week, President Mohamed Morsi declared a state of emergency in Port Said, Suez and Ismailia in the wake of deadly clashes, although the opposition condemned the measure.

“Yesterday’s session witnessed towards its end a sudden surge in trading and this is what led the market to rise today. The market seems to have ignored the current political stalemate,” said Ahram quoted Ashraf Abdel Aziz, head of institutional sales at the Cairo-based brokerage Arabeya Online as saying.

The news website reported that out of 166 traded stocks, around 126 stocks recorded gains while only 16 suffered losses. Blue-chip stocks Orascom Construction Industries (OCI) and Commercial International Bank (CIB) lifted 1.89 and 1.91 percent respectively.

“How the market will perform in tomorrow’s session really depends on the country’s political situation. It’s something impossible to predict for the time being,” Abdel Aziz told Ahram Online.

It said foreign investors are still cautions regarding the political situation in Egypt.

The real estate sector saw strong performance, representing almost 14.2 per cent of market activity. Heavyweights Talaat Mostafa Group Holding (TMGH) and Palm Hills Development rose by a healthy 3.48 percent and 1.29 percent respectively.