Market Report: Egypt stocks end week in green

Big shares maintained their prices and drove the main index up, but smaller cap stocks were unable to save the EGX70 from dipping

Egyptian stocks posted slight gains in the week's final session, with the EGX30 main index finishing up 0.38 per cent to settle at 4,747 points.
The Bourse made its strongest gains in a week yesterday, gaining 2.27 per cent, after fluctuati8ng between losses and mild gains since the US credit downgrade was announced almost two weeks ago.
Big shares in general sustained their prices in a mainly uneventful three-hour trading session.
"Blue-chips are doing well and maintaining their price levels despite the index being below 4,800 points," says Mostafa Badra, a capital markets expert.
The broader EGX70 index, however, stumbled for the fifth day in a row, losing 0.81 per cent. The index which includes smaller, speculative stocks has shed 21.56 per cent since the beginning of the year.
"Individuals sales are pushing the EGX70 down," according to Badra, who says individuals seem to have been more interested in EGX30 shares recently, due to their fallen prices.
The EGX30 has slumped 33 per cent from 7,100 points at the beginning of this year to its current level, following the popular uprising that forced former President Mubarak to step down.
Prices of market leading shares have dropped to levels unseen since the 2008-2009 financial crisis and is gradually luring some investors into buying them.
Mobinil shares saw the highest gains of all major stocks, finishing 3.39 per cent up to close at LE102.99 per share. The mobile phone company's stock surged 10 per cent on Wednesday on speculation over potential changes in its shareholder structure.
This led the Egyptian exchange to temporarily suspend trading in the company's shares at the start of today's session until the leading phone provider clarifies the rumours over its shareholder structure.
Badra praises the suspension decision but thinks it was a little delayed. "I would have preferred trading to be suspended on Wednesday's session also," he says.
Turnover reached LE348 million, with Egyptians comprising 65.99 per cent of trade and net selling LE42 million. Arab and foreign investors were net buyers, comprising 11.39 per cent and 22.62 per cent respectively.
Sectors varied between red and green, but losses and gains were minor. The banking sector was the biggest success, finishing 1.87 per cent up, as both Commercial International Bank and National Societe Generale Bank gained 2.14 per cent and 2.04 per cent respectively.
From 180 traded stocks today, 91 declined while 69 finished in green.
Telecom Egypt, Orascom Development Holding and Abou Kir Fertilizers were among the main gainers, up 1.34 per cent, 1.43 per cent and 2.58 per cent, respectively.
Orascom Construction and Orascom Telecom both dropped by 0.38 per cent and 0.29 per cent.
“Investors are starting to avoid investing in heavyweights and turning to middle capital shares … that is why we find OT, OCI down and El-Swedy Electric up,” Badra says.