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Market Report: Small decline in Egypt's stocks reflect hope for economic recovery Financial experts expect a quick rebound for the Egyptian economy after the country's bourse saw only minor losses on its main index
Egypt stocks ended Monday's session in red for the first time in the week as its benchmark EGX30 slightly down by 0.2 per cent recording 3,832,39 points on traders fluctuations as this tiny decline does not reflect a negative view. "Today's drop could be considered a normal fluctuation, but it is positive given the overall perception of improvement in Egypt's economy," Mostafa Badra capital market expert told Ahram Online. Badra explained that there is significant evidence reflecting these positive expectations for the market, such as the visit of a delegation from the International Monetary Fund (IMF). "The drop we have seen today is very minor given the big picture," Badra added. An IMF delegation arrived in Cairo on Monday to negotiate a $3.2 billion loan with the government. The delegation headed by IMF Director for the Middle East and North Africa Masood Ahmed is projected to last for a few days. Like the main index, the broader indices also saw a small drop as EGX70 and EGX100 declined 1.4 and 1 per cent respectively. Out of 166 listed stocks 32 gained and 123 saw losses in a session where the total turnover was LE 212.7 million. Foreigners were only net-buyers with LE 16.2 million while Egyptians were net-sellers with LE 15.2 million, reflecting the rising trust of investors abroad. "The market is still cautious, but prospects are slightly improving on relative political stability and positive statements on the economy by government officials," Badra commented. Most heavy-weight sectors saw a decline except for telecommunications which stayed in the green led by Telecom Egypt (TE), the Egypt's landline monopoly which increased 0.93 per cent to close at LE14.11 per share. TE is scheduled to decide upon a dividend distribution by the end of January. Market's two high-cap shares Orascom Construction Industries and Commercial International Bank slumped 0.6 and 0.4 per cent respectively, although the latter recorded the highest turnover amid shares with LE 26 million. Property shares rose on Palm hills and SODIC gains with 1 and 0.7 per cent respectively. The financial sector's share Pioneers Holding was among top gainers with a 5.4 per cent increase and a significant turnover of LE 19 million. "The new acquisitions undertaken by Pioneers Holding have boosted the profit prospects of the company," Badra explained.
