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Market Report: Egypt Bourse welcomes army's statement and Euro-markets rebound A military counsel statement reassures investors that Egypt is going ahead with announced road map
After EGX30 lost almost 7.5 per cent of its value over the past three days, the bourse has finally seen the green in Wednesday's session with the main indicator gaining 2.42 per cent to reach 5,092 points. The broader EGX70 has even seen larger leap, gaining 3.26 per cent. Analysts attribute the stock leaps to a revived investor trust in Egypt's future and the relative rebound in international markets. “The statement by the Supreme Counsel of Armed Forces (SCAF) assured investors that everything will be going according to the announced plan,” saidIssa Fathy, vice president of the securities division at Cairo's Chamber of Commerce. Fathy explained that the assertive tone of the statement transmitted confidence to investors, “The military's stern warning to anyone who disrupts public order was compelling and convincing.” The influence of the SCAF's statement appeared in yesterday's session. The market witnessed a sharp upward turn after the statement was aired, cushioning its almost 4 per cent slump to 2.8 per cent in just one hour. Today, the board was flooded with green as 177 shares gained and only six shares declined out of 190 traded stocks. Gains in blue chips aided today's overall hike. Stocks such as Orascom Construction industries, Telecom Egypt and Orascom Telecom gained by 2 per cent, 1.8 per cent and 3.39 per cent respectively. The Commercial International Bank's stock, the fourth share in terms of market cap, comprised almost 18 per cent of total market activity. It gained 1.01 per cent. Other analysts linked the improvement in the Egyptian Exchange to international markets, namely those of the Eurozone, which witnessed slight improvements Tuesday on the back of Chinese growth figures. Their growth was, however, constrained by doubts surrounding growing debt problems, especially afterMoody's downgraded Ireland's credit rating to junk. Foreigner activity contributed to 28 per cent of the total LE561 million total market turnover. They were net sellers at LE44.2 million. “Foreigners are selling today to realise gains on their purchases yesterday,” Fathy explains. “Despite being net sellers yesterday, they bought stocks worth LE230 million at very low prices.” All sectors finished in the green, with tourism and real estate finishing up at 6.77 per cent and 4.22 per cent respectively.
