Market Report: Bargain hunters pull EGX30 up 2 per cent

After several days of losses, Egypt's stock market ends day in green despite recent political turbulence

Egyptian stocks trimmed recent losses on Tuesday as market forces rode out fears of political instability, with sustained interest by regional investors pushing both market indices firmly into the green.
The benchmark EGX30 finished the session up 2.02 per cent to alight at 4,018 points.The previous day's session, coming in the wake of a bloody crackdown on protesters in central Cairo that killed at least 26 and wounded hundreds, saw the main index finish down 2.3 per cent.
"For more than three weeks, share prices have been falling. Prices for all stocks – not only high caps – are down, making it attractive for some investors looking to take advantage of price falls,” said market expert Moustafa Badra. “These are usually the ones who make the biggest profits.”
Out of a total of 183 listed stocks, 159 posted gains while only 17 lost value – a solid overall performance that pulled the broader EGX70 index up a hefty 3.11 per cent. Most market sectors closed in the green, although a small handful remained stagnant.
Turnover stood at LE267.4 million, with high-caps – targeted by bargain-hunting investors – leading the way.
Arab investors, meanwhile, upped their involvement in the market, accounting for 10.7 per cent of the day's trading and representing – atypically – the market's sole net-buyers.
"It's one of the few days in which Arabs have been net buyers,” said Badra. “But there's no particular reason for this.”
Commercial International Bank saw the highest turnover – nearly LE42 million – to finish up 1.1 per cent for the day. Orascom Construction Industries, Egypt's largest listed stock, did even better, jumping 6.3 per cent.
Citadel Capital stock also soared 6.3 per cent after a foreign buyer bought more than 5 million shares of the private equity firm, traders said. According to analysts, the stock had been weakened after an LE1 billion ($167.6 million) rights issue went undersubscribed.
On Monday, Citadel launched a second-round rights issue. Traders say that a road show by investment bank EFG-Hermes might have drummed up foreign interest in the company's stock.
"The road show may have prompted some interest in the name," said a trader at CIBC brokerage. “Citadel has been trading at prices much lower than its enterprise value.”
Other gainers for the day were Citadel Capital, up 2.66 per cent, and the beleaguered Ezz Steel, up 3.8 per cent.
Orascom Construction Industries, Commercial International Bank, Orascom Telecom and Telecom Egypt all rose as well, by 4.21 per cent, 1.1 per cent, 0.35 per cent and 1.33 per cent respectively.
As Tuesday's trading was wrapping up, reports began circulating that Finance Minister Hazem El-Beblawi had resigned his position to protest Sunday's violence.
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