Egypt Market Report: EGX30 down 1.2 per cent as foreign traders step back

Sunday's gains partly reversed as Egyptians step up involvement and analysts hail a return to normality

Egypt's stock market dipped 1.17 per cent on Monday, with the benchmark EGX30 finishing at 5,494 points as Egyptians overtook foreigners as main traders, developments that analysts claim show the Bourse is returning to normal.
"The stock market is not supposed to be gaining every day, there are always ups and downs," says Hatem Gameh, a Cairo-based financial expert. "These days the market is attractive to investors -- nothing is worrying in today's movement."
The EGX30 gained 1.7 per cent on Sunday, boosted by attractively low share prices, and made sharp gains in the opening minutes of Monday's four-hour session. However, sharp falls over the next hour plunged the main index below its starting level, bottoming out at 5,497 points by late morning, after which it made modest gains.
The broader EGX70 and EGX100 were also down 0.21 per cent and 0.59 per cent respectively by close of play.
Banks were the only sector to show gains, with stocks in the previously stalwart telecoms, construction and materials and food and beverages industries all suffering modest losses. Of 188 listed stocks, 129 showed declines and 52 gained value.
Total market turnover was LE590,797,232.
Top gainer was Cairo Investment and Real Estate Development, closing up 9.89 per cent at LE18.22 per share. Bank of Egypt and Beltone Financial Holding both gained around 5 per cent. Biggest loser was cement company Suez Bags which dropped 9.58 per cent.
Other companies involved with real estate, a sector that has stomached heavy losses since the market reopened on 23 March, saw further turbulence, perhaps influenced by recent announcements.
Palm Hills Development was down 2.87 per cent. Shares in the Talaat Moustafa Group also dipped 5.56 per cent to close at LE4.50 in spite of newly released favourable profit figures.
Yesterday the Egyptian Financial Supervisory Authority ruled that Palm Hills' Annual General Meeting was invalid due to its failure to complete disclosure proceedings.
"Real estate shouldn't go down much further, there might even be a small pick up as prices become more attractive," says Walaa Hazem of HC Securities and Investment, who also describes the morning's trade as "normal - one day up, one day down" activity.
Ezz Porcelain, part of the troubled Ezz Steel group, shrugged off Monday's news of profit losses to edge up 0.69 per cent.
After several days of buying sprees, foreign investors scaled back their involvement, comprising just 26 per cent of trade but remaining net-buyers. Egyptians, responsible for 70 per cent, were also net-buyers, recording a net flow of LE23.6 million.
"Foreigners made up just under a third today, which is the usual pre-revolutionary rate," says Hazem. "It shows normality is returning which will probably continue, although it depends if there is renewed interest or more activity in the market -- a lot of factors."