Market Report: Egypt stock slips to red in choked trade

Benchmark index dips 0.23 per cent as trading volume falls to its lowest in several years, reflecting lack of confidence in the market

Market fluctuations continued Tuesday as trade on the Egyptian stock exchange slipped to its lowest volume in years and the main index slid back into the red.
After one day of gains led by reports of the imminent collapse of Gaddafi's rule, the EGX30 benchmark dipped 0.23 per cent to close at 4,631 points.
“It was another restrained Ramadan session with a very flat performance,” said Ashraf Abdel Aziz, head of institutions sales at Arabia Online Securities, unable to point to a single overriding factor behind the Bourse's slight decline.
Total market turnover was just LE221.5 million, a little under 10 per cent of it – LE20.24m -- taken up by trade in investment bank Pioneers Holding.
After leading the upswing on Monday with a five per cent rise, Pioneers Holding was today's top loser despite releasing positive financial results for the second quarter of 2011. The value of its shares lost 4.82 per cent by the end of trade.
“Pioneer's slump or surge is due to traders' speculations and cross-trading transactions, it's not a reflection of the share's real value,” said Abdel Aziz.
From 174 listed stocks, 75 gained, 82 lost value and 17 remained unchanged.
After Pioneers, the main losers were the Alexandria National Company for Financial Investment (down 4.82 per cent), Paper Middle East (down 4.32 per cent), Egyptian Chemical Industries (down 4.07 per cent) and EL Ezz Aldekhela Steel (slipping 3.81 per cent).
Top gainers were Arab Pharmaceuticals, rising 9.76 per cent, and Orascom Development Holding, up 7.12 per cent.
The two largest sectors in terms of market capitalisation -- construction and materials and telecommunications -- were among the losers, while banking and financial services were in the green.
“Textile shares are doing well despite the troubles faced by the companies in the sector outside the Bourse,” said Abdel Aziz, pointing to a wave of strikes by disgruntled workers and the rise in prices for basic materials.
The broader EGX70, which includes smaller and speculative stocks, lost 0.14 per cent loss of its value.
Foreigners and Arabs were net-buyers and Egyptians were net-sellers in Tuesday trade. Individuals were net-sellers while institutions were net-buyers.