Egypt's index fell marginally 0.02 per cent to close at 6,697 points in the first trading day of the week. The relatively flat line in the Egyptian stock market follows a week of panic over turmoil in Tunisia and other parts of the Arab world. “Everyone is on vacation or just taking a break from the stock market and that keeps trading idle,” a financial analyst at a leading investment bank who preferred to remain anonymous said. “We can't judge the market trend until Wednesday when people are back from Tuesday's Police Day (a national holiday).” Total turnover reached LE1.4 bn on Sunday. Foreigners have dominated today's stock market as net buyers constituting 49 per cent of total investors, despite being net sellers last week over uncertainty sown by events in Tunisia. “The reason behind foreigners' domination is Orascom Development Holding's heavy transactions that took place today,” revealed the analyst. “But that doesn't mean the market was active.” “Today's slight decrease in some sectors is never an indicator because this probably tails after last week's downward trades,” he adds. Last week, Cairo's financial markets felt the pain of the regional political upheaval taking place in Tunisia, and other parts of the Arab world, pushing the stock market down by almost 8 per cent, with the Egyptian pound languishing near a seven-year low against the dollar. Since the end of last week, Egyptian media was filled with statements by ministers and high officials confirming that neither the hike in food prices nor the turmoil in Tunisia will affect the domestic market. Yesterday, the minister of finance ruled out requesting an additional LE4.5 - 7 bn to meet food price increases, saying the current funding provisions were sufficient to cover all General Authority for Supply Commodities (GASC) requirements. Depressing political news, compiled with good economic news has left traders as well as analysts with mixed messages. “You'll never know what will happen next,” says Moheb Eddin Ageena, an analyst at Beltone Financial. “Political turmoil leaves the whole market in panic, yet good economic news pulls it upward, leaving the market in balance.”
