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Market Report: EGX30 sees less-than-stellar rise EGX30 gains mere 0.3 per cent, frustrating expectations of surge on back of trouble-free second-round polling
Egypt's EGX30 stock index edged up by 0.3 per cent on Wednesday to gain 3,918.71 points, frustrating expectations of a substantial upturn following a trouble-free first day of second-round parliamentary polls. Following the first phase of Egypt's elections, which began on 28 November, the stock market had surged 5 per cent. "The market is very fast to adapt to news, whether positive or negative,” Ashraf Abdel Aziz, head of institutional sales at Arabeya Online Securities, said. “Orderly elections are no longer enough to promote optimism among investors." Of 172 listed stocks, 75 saw gains and 73 lost value in a session that featured the lowest daily turnover in a decade. Foreigner investors were net sellers for the day, making LE9.1 million in trades, while Egyptians represented net buyers, making LE8.3 million worth of transactions. Abdel-Aziz said that investors were cautious due to market rumours that Egypt might be removed from MSCI's emerging market index, which is expected to announce the results of its market-classification review for its Qatar and UAE indices on December 14. Both Gulf countries are expected to be upgraded to "emerging market" status. According to MSCI's website, however,Egypt is not presently at risk of being removed from the index. The EGX70 index, meanwhile, appeared to buck the trend, declining slightly by 0.2 per cent, unlike the broader EGX100 index, which climbed 0.1 per cent for the day. Most market blue chips rose, headed by Commercial International Bank, up 0.1 per cent, and Orascom Construction Industries, up 0.6 per cent. Shares in financial services giant EFG-Hermes, meanwhile, recorded a loss of 1.4 per cent. Telecom Egypt and Palm Hills also rose slightly, gaining 0.2 per cent and 0.8 per cent respectively. NSGB shares, meanwhile, edged up by 0.43 per cent to close the day's trading at LE23.58 per share. NSGB, Egypt's second largest listed bank, plans to issue 36.65 million new shares at a par value of LE10 to be distributed free to shareholders holding NSGB stock at the close of Wednesday's trading session. Accordingly, the bank's paid-in capital is expected to increase by LE366.5 million (some $61 million) to a total of LE4.03 billion. The increase will reportedly be financed from NSGB's retained earnings. http://english.ahram.org.eg/News/29347.aspx
