Egyptian stocks registered important gains for the second consecutive day, after falling into the red last week. The benchmark index EGX30 gained 1.27 per cent on Tuesday, to close at 5,895 points. By the end of the day, the market started to correct itself, reducing its gains slightly, a step seen as normal by analysts. "After last session's gains of 3 per cent and the high early morning gains, profit-taking is normal," commented Ashraf Abdel-Aziz, head of institutional sales at Cairo-based brokerage Arabeya Online, adding that this slight regression at the end of the day gives an indication that the market will probably lose some of its gains at the start of tomorrow's session. "But this wouldn't necessarily continue until the end of the day. If turnover remains high, the market might change its direction later," he said. The market's sensitivity to political instability has clearly reduced during the last few weeks. "This is due to higher purchasing power, which forms a bulwark," said Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce. "The market is stronger now, due to higher purchasing power. It is like a person with a strong immunity system that suffers from 'flu, and therefore isn't highly affected," he added. Turnover has increased significantly in recent weeks, compared with earlier in the year. By exceeding LE1billion, the averages of the last week are around 5 or 6 times the averages during the first weeks of August. From a total of 186 stocks traded on the day, 112 gained in value and 67 declined, with a total turnover of LE1.053 billion ($224.4 million). Egyptian market heavyweight EFG-Hermes achieved the highest turnover, recording LE149.8 million. Shareholders of EFG-Hermes reaffirmed on Sunday their approval of a planned tie-up with Qatar's QInvest, after demands by the Egyptian Financial Supervisory Authority (EFSA) for more information on the deal were met. Financial services, excluding banks and the telecommunication sectors, saw the highest turnover, with some LE299 million each, followed by the real estate sector with some LE275.9 million. "Many of these shares haven't increased with the market hike yesterday. It is a normal response, especially as many of the shares are trading below their prices before the revolution," says Abdel-Aziz. In the financial services sector, Citadel Capital gained some 3.97 per cent. Telecom Egypt was the biggest gainer in the telecom sector, rising by some 3.62 per cent. Orascom Telecom Media and Technology Holding (OTMT) and Orascom Telecom Holding (OT) followed, rising more than 3.5 per cent each. Talaat Moustafa Group (TMG) gained some 4.45 per cent. Egyptian individuals ended the day as net buyers, while foreigners and Arabs were net sellers. Foreign institutions were net buyers, recording a net flow of LE 45.4 million. The broader index EGX70 gained some 0.76 per cent. http://english.ahram.org.eg/News/53153.aspx
