Market Report: Egypt stocks slip on political uncertainty

Bourse continues to register record-low volumes, slipping 0.41 per cent on anxieties about Egypt's political future

Egypt stocks slipped further into the red on Tuesday as political uncertainty continued to dog the local market.
The benchmark EGX30 index dropped 0.41 per cent to close the day's session at 3,619.72 points. The broader EGX70 index, meanwhile, similarly fell by 0.74 per cent for the day to alight at 413 points.
"The market will not pick up again before mass protests scheduled for next month pass without incident," Mohamed Metwally, a trader at Prime Securities, told Ahram Online.
Mass rallies have been planned for 25 January to commemorate the one-year anniversary of the popular uprising that led to the ouster of former president Hosni Mubarak. Numerous political groups and revolutionary youth coalitions have announced their intention to use the event to demand that Egypt's ruling Junta – which has run the nation since Mubarak's removal – cede power to an elected civilian authority.
Many observers, however, fear the event might devolve into clashes between anti-junta protesters and security forces.
According to Metwally, large investment funds – both foreign and Egyptian – are likely to adapt a wait-and-see attitude before taking up any new market positions.
"We might see a slight improvement in the market's performance in coming days since investment funds might try to boost the value of their holdings by year end by purchasing shares in companies in which they're invested," he said.
Total market turnover remained low for the day at LE117.3 million ($19.55 million) – a slight improvement over the past two days, which witnessed some of the lowest trade volumes in recent memory.
Foreign investors' share of the day's trading returned to normal levels, meanwhile, accounting for 18.12 per cent of total trade volume, making foreigners net sellers at LE10.4 million. Egyptian investors, for their part, accounted for 74 per cent of the day's trading, net-buying at LE20.9 million.
Individual investors dominated the market, accounting for 64.45 per cent of trading, making them, too, net buyers.
Of 175 stocks listed on the exchange, 120 finished the day in the red, while 39 increased in value. Blue chips, including Orascom Construction Industries (OCI), Telecom Egypt (TE) and Commercial International Bank (CIB) all fell slightly.
Other shares listed on the main benchmark index, however, plummeted to all-time lows. Ezz Steel, for example, Egypt's leading steelmaker, fell by 2.56 per cent to close at LE3.8 per share.
Similarly, real estate developer Sixth of October Development Company (SODIC) also fell to an all-time low of LE7.99 per share.
Stock in Egyptian garment maker El Nasr Clothing & Textiles Co (Kabo), meanwhile, dropped 1.69 per cent to close at LE0.58 per share after the firm reported greater-than-expected first quarter losses.