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Market Report: EGX30 falls 1% on Mubarak trial delay Share prices fall slightly following news that ousted president's trial is to be postponed by one week
Egypt's benchmark EGX30 index fell by 1 per cent in Wednesday's trading session to close out the day at 3,586.55 points on news that ousted president Hosni Mubarak's trial would be postponed for one week. The months-long trial of Mubarak, his two sons, former minister of interior Habib El-Adly, and several of the latter's assistants was postponed on Wednesday to 2 January. Trial proceedings had recommenced Wednesday morning following a three-month hiatus. The defendants face charges of ordering the killing of unarmed protesters during Egypt's January uprising, along with a host of corruption allegations. Market expert Mostafa Badra told Ahram Online that Egypt's bourse would be closed next Sunday – New Year's Day – giving investors a three-day vacation from trading. For this reason, he said, investors had refrained from injecting more funds into the market in Wednesday's session. The broader-based EGX70 and EGX100 indices also registered losses for the day, dipping 1.6 and 1.4 per cent respectively. Foreign investors were net buyers – for the first time in two weeks – at LE427.2 million. Their Egyptian counterparts were also net buyers for the day at LE8.7 million. Of 179 stocks listed on the exchange, 31 rose for the day while 135 lost value, in a session that saw LE194 million in daily turnover. “Turnover was more than in previous sessions, but it remains relatively small,” said Badra. Construction materials was the one sector to record gains on Wednesday led by Orascom Construction Industries (OCI), which ended up 0.4 per cent and accounted for the day's highest turnover at some LE26.6 million. “There's a possibility that OCI could be split into two distinct companies in order to attract more investors,” said Badra. Market blue chips, meanwhile, fared poorly for the most part, led by Commercial International Bank (CIB) and EFG-Hermes, which fell by 2.2 and 0.2 per cent respectively. Real estate stocks similarly suffered, with TMG, Palm Hills and SODIC all falling by 3.3, 1 and 2.1 per cent respectively. “New restrictions on unused land and the hefty fines that would be imposed on the owners have raised fears among investors in local real estate,” Badra said.
