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Market Report: Heavy bank trades edge up Egyptian index Bourse ends marginally in the green after a mainly cautious day marked by high trade in shares of a single Egyptian bank
The closing stats of Egypt's stock market were decided Tuesday by rapid, high-density trade in shares for a high-cap bank; activity which trimmed the benchmark index's early-day gains and gave extra proof of the Bourse's current hypersensitivity. The EGX30, Egypt's main index, finished up 0.35 per cent at 5,421 points. But the secondary indexes, which give a broader picture of less valuable stocks, fell 0.62 per cent and 0.29 per cent. A single decision by an institutional trader may have altered the course of trade, believes Ashraf Abdel Aziz, head of institutions sales at Arabia Online Securities. Trade in Egypt's Commercial Investment Bank (CIB) accounted for a quarter of the day's total LE609.4 million in equities turnover, giving the company's fate an immediate bearing on that of the main index. "CIB's share price was going up until one large institution -- probably foreign -- sold when it hit LE30.45," says Abdel Aziz. This sale of a large batch of shares pruned the bank's earlier gains -- it edged just 1.4 per cent -- ensuring a muted overall rise for the EGX30. It was one of the few moments of drama in an otherwise uneventful trading session. Of 182 listed stocks, 59 gained and 112 declined in Tuesday trade, but almost all rallies and losses, whether by company or sector, were modest. Banks led the way, finishing up 1.1 per cent, with Union National Bank seeing the day's best gains of 7.5 per cent. Traditionally weak property and tourism also saw solid rises, with Transocean Tours up 6.7 per cent and El Obour Real Estate up 5 per cent. In contrast, embattled asset manager Citadel Capital was the day's loser, down 5.19 per cent, when it saw a large-scale sell-off of stocks similar to that of CIB. Egyptians retained their quiet confidence; responsible for 52.4 per cent of shares, they were net-buyers, in contrast to returning foreign investors who hit a recent high of 42 per cent but ended net-sellers. "Market behavior contradicted what we are used to," says Abdel Aziz. "Normally when Egyptians are active and buying then the broader indexes rise, reflecting the stocks they are interested in. That didn't happen today."
