Egyptian stocks shifted their downward direction on Tuesday, as benchmark index EGX30 gained 1.24 per cent, recording 4,448.84 points, in the most notable rise since presidential elections started on 25May. Turnover, however, remains modest, with a slight rise reaching some LE173.8 million ($29 million). Orascom Telecom Media and Technology Holding (OTMT) drove the market, gaining 9.32 per cent during today's session on dividend distribution. "The market found the spark it was looking for - it was OTMT's news that the company will distribute a LE1.05 dividend. We have been expecting such a dividend from the proceeds of Mobinil's sale; however, the news created the positive sentiment the market was lacking," said Naeem Brokerage. OTMT sold its stake in Mobinil to France Telecom for LE202.5 ($33.55) per share, netting the Egyptian company about LE6 billion. Capital markets expert, Mostafa Badra believes that speculation, along with the OTMT dividend, drove the market today. "Some investors see an opportunity in the Egyptian market, if the presidential elections go well. In only a few days, we might see a new president for Egypt, and the social and political stability that the market direly needs might be achieved," Badra explained, adding that OTMT triggered a positive sentiment in the market. Other shares like TMG and EFG-Hermes followed OTMT, increasing by 4.26 and 1.8 per cent respectively. From the day's 169 listed stocks, 119 gained and 18 lost. Mobinil was the biggest loser of the EGX30, ending the day down 2.97 per cent, but the company's turnover was limited, which restricted its effect on the market. Despite today's improvement, Badra expects a continuation of the market's "below average" performance for the coming two days. "I don't expect new liquidity to enter the market," he concluded. Egyptian and foreign investors ended the session as net buyers, recording net flows of LE1.7 million and LE4.9 million respectively, while Arabs closed as the only net sellers, recording a net flow of LE6.6 million. The broader-based EGX70 index lost 1.15 per cent. http://english.ahram.org.eg/News/44704.aspx
