Egypt's stock market continued its upward trend on Tuesday, despite ongoing political uncertainty and the drop in the country's foreign currency reserves. Egypt's main benchmark EGX30 index rose by 0.81 per cent to stand at 5,795 points. The broader EGX70 index rose by 0.24 per cent. "We're seeing strong purchasing power which is helping the market recover. The market also seems to be ignoring the deadly events in Tanta yesterday as well as worrying economic signs such as the drop in foreign reserves," said Ashraf Abdel Aziz, head of institutional sales at the Cairo-based brokerage Arabeya Online. Angry protesters attacked the governorate security headquarters and the police station in Tanta on Monday, and clashes erupted between the protestors and security forces. Egypt's central bank reports that the country's net foreign reserves fell to $13.6 billion in January, down from $15 billion one month earlier, a rate that analysts describe as "alarming." Out of 170 traded stocks, around 82 stocks recorded gains while 58 suffered losses. Blue-chip stocks Orascom Construction Industries (OCI) and Commercial International Bank (CIB) rose by 0.94 and 0.85 per cent respectively. Turnover registered a weak LE411 million, suggesting that foreign investors are still cautious about the political situation in Egypt. Egyptian and Arab investors were net sellers for the day, selling off LE66 million and LE11 million in stocks respectively. Foreign investors, meanwhile, were net buyers, picking up a significant LE76 million worth of shares. The real estate sector performed exceptionally well on Tuesday, leading the market in terms of turnover at almost LE74 million. Market giant Palm Hills both rose by 0.81 per cent, while Talaat Moustafa Group Holding (TMGH) stood unchanged.
