Market Report: Egyptian stocks edge up as week ends on promise of stability

Bourse benchmark sees a slight gain of 0.19 per cent Thursday as investors wait for favourable political developments

The EGX30, Egypt's main stock index closed at 4,998.51 points, up 0.19 per cent from yesterday, in what analysts called normal market fluctuations as political instability continues to drive out investors.
Unlike Wednesday, most sectors finished in the green with the exception of chemicals, basic resources, construction and materials and financial services.
"You can't really make head or tail of the market these days!" says Walaa Hazem, financial analyst with HC Securities. "The markets are so volatile to political changes that you can't speak about rational market trends and fluctuations."
Total market turnover was LE1.6 billion. Since the 25 January revolution, this is a figure that has fallen dramatically.
"You can't expect high market turnover as people prefer to stick to the sidelines in this unstable time," says Hazem. "Plus most rational traders and investors have already left the market to watch from the outside."
Hazem expects market fragility to last until Egypt emerges from its political transition.
"Our Bourse is expected to stay weak until a new, truly elected civil government takeover." he says. "Before then, every political victory gained by the people will gradually help stabilise the stock market."
Easter holidays had an effect on foreign trade, which retreated to 16.41 per cent of the market, representing net-sellers and net-sales worth LE36.8 million.
Conversely, Egyptians were responsible for 81 per cent of trade and were net buyers, with net spending of LE46,298,382.
Of 180 listed stocks, 116 recorded gains while 50 declined.
Decisions to freeze assets and arrest former regime officials and businessmen connected to Egypt's ousted president are believed to have sent shockwaves through the stock market.