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Market Report: Egyptian rally slows as EGX30 closes up less than 1 per cent Egypt's stock market rally slowed on Monday as the EGX30 index trimmed early morning gains of 7.14 per cent to close up just 0.75 per cent, ending the day at 5,251 points
The index soared 5.25 per cent on Sunday, the first stock market climb in nearly two months, but some analysts see today's movements as a more reliable indicator of the market's immediate prospects. "When the market reopened last week, stocks were offered at an attractively low level, but the use of circuit-breakers has stopped free movement and created some over-optimism about the market," said Ashraf Akhnoukh, senior trader at the Commercial International Brokerage Company. "Today's performance was more realistic -- there was real movement and volume to transactions." Monday's market opened strongly, with the broader EGX100 hitting its circuit-breaker in the first 15 minutes, prompting a half-hour suspension for the fourth consecutive day of trading. Interest waned after the resumption of trade with an hour-long drop in the EGX30, caused by a retreat in blue chip stock buying, until it plateaued at a 0.75 per cent rise for the final 80 minutes. After stronger initial gains the EGX70 edged 1.4 per cent, reaching 545 points at the end of trade while the EGX100 rose 2.1 per cent. The Bourse recorded total market turnover of LE1.006 billion on Monday. Domestic investors were the only net buyers, recording a net flow of LE126.4million. Foreigners and Arabs were net sellers with net flows of LE75.7million and LE50.7million respectively. Of 184 listed stocks, 112 showed gains and 66 declined, with financials and construction the most active sectors. Shares in several telecommunications firms experienced solid gains, with Mobinil climbing 10 per cent and Telecom Egypt 6.25 per cent. "The potential is in the telecoms sector; this is an industry that didn't dip, even during Egypt's revolution," said Akhnoukh. Orascom Telecom's announcement of its near-completion of a merger with Russian firm Vimpelcom led some analysts to predict a similar rise, but its stocks reversed an early-day climb to slip 0.94 per cent by close of trade. Commercial International Bank, the country's biggest lender, closed down 3.19 per cent and GB Auto, the Middle East's biggest independent carmaker, dropped by 8.5 per cent.
