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Egypt stocks rebound after Sunday's losses EGX30 rises 2.5 pct following Sunday's wipe-out in wake of President Morsi's divisive constitutional declaration
Egyptian stocks rebounded on Monday after falling by almost 10 per cent the day before in the wake of President Mohamed Morsi's controversial presidential declaration, issued last Thursday. The main EGX30 index rose by 2.5 per cent to record 5,004 points on speculation that Morsi could partially back down from his decree, which has further polarised Egypt's political stage. Morsi issued his constitutional declaration on Thursday, which states that his presidential decrees cannot be overturned by judicial authorities. "News of ongoing discussions between Morsi and judges was a good sign for investors, especially Arab investors," Eissa Fathi, head of securities at the Cairo Chamber of Commerce, told Ahram Online. Arab investors ended Monday trading as net buyers, picking up some LE44 million in stocks. Domestic investors, by contrast, were net sellers, unloading some LE44.5 million. Participation by foreign investors, meanwhile, was relatively small, amounting to only 15 per cent of the day's total trade volume. Foreign investors were net buyers on Monday, making some LE777,000 worth of purchases. Most heavyweight shares closed up for the day, led by Commercial International Bank and Orascom Construction Industries, which rose by 3 and 2.8 per cent respectively. Property shares Talaat Mostafa Group and SODIC rose by 2 and 0.5 per cent respectively, while Palm Hills failed to overcome Monday's losses, ending down by 2.3 per cent. Orascom Telecom and Ezz Steel, meanwhile, rose by 6.4 and 2 per cent. According to Fathi, both companies "were positively impacted by their shares listed abroad [GDRs]." Of 169 stocks listed on the exchange, 54 gained on Monday and 91 saw losses in a session that saw some LE406 million in turnover.
