Market Report: Egypt stocks cruise to a fifth day of gains

Main index rises 0.8 per cent as attractive prices for high-cap stocks keep foreigners interested even while profit-taking pressures build

Egypt's Bourse climbed for its fifth straight session on Monday, as a weekend of relatively stability and attractive price valuations for select high-cap stocks encouraged another wave of buys.
The benchmark EGX30 climbed 0.83 per cent to reach 4,249 points, following Sunday's 1.49 per cent rise. The index has risen 7.6 per cent since bottoming out on 10 October.
"Today's shy growth is normal as investors are starting to take profits from the last five sessions," said Mohamed Metwally, a trader at Prime Securities. "It is very impressive that the market did not drop."
From the 183 stocks traded on Monday, 80 gained in value while 89 declined -- a mixture reflected in the broader EGX70 index which slipped 0.97 per cent.
Metwally explained this shift as a predictable move towards profit-taking after a full trading week of gains.
"Most EGX70 stocks which were sold today made a 5-10 per cent profit; that's why this index dropped today," he said.
Total market turnover was LE309.425 million, an above-average showing given the slashed trading volume of recent months.
Alexandria Mineral Oil Company was a major gainer, up 6.3 per cent to close Monday trade at LE65 per share.
On Sunday the company announced annual growth of 87 per cent in its 3Q2011 net profits, placing them at LE383 million.
Commercial International Bank (CIB) and Orascom Construction Industries (OCI) were the day's most traded shares, making up 16 per cent of total turnover at LE24 million apiece.
"CIB is the number one share for foreigners - usually whenever they are buying, CIB will gain," said Metwally of the stock, which finished up 2.1 per cent.
Foreign investors made up 25.8 per cent of the day's trade and were net-buyers to the tune of LE21.948m.
OCI gained 1.03 per cent to close at LE228.81 per share.
"Everybody is expecting OCI to post very impressive results, that's why the company's share is gaining steadily," Metwally explained.
OT was similarly active, seeing LE23.6 million in turnover but slipping 0.92 per cent to close at LE3.23 per share, as the announced postponement of the company split til the end of 2011 dented investor appetite.
The small slice of Arab investors -- around 5 per cent of the market -- reversed their strategy, shifting from sellers to buyers and finishing with LE9.285m more stocks than they started. Egyptians were the day's lone net-sellers, selling a net LE27.4m.
Institutions were net buyers recording a net flow of LE31.5m while individuals were net sellers.