Market Report: Egypt's benchmark dips for second day, down 0.4 per cent

Upsurge in individual investors prompts small-cap firm gains and rise of broader index

Egypt's stock market benchmark closed down 0.43 per cent at 5.470 points in its second consecutive day of modest losses as individual investors snatched a larger than normal share of midweek trade.
"It was speculations led by individual investors that drove the midweek session," says Mohamed Asarat, financial analyst with Pioneers Holding.
The EGX30 slipped 1.2 per cent yesterday and began Tuesday with a 25 minute dip, spending the remaining three and half-hours inching slowly upward to approach its starting level. By closing bell, early losses had been pared to 23 points.
The broader EGX70 and EGX100 indexes showed small gains of 1.27 per cent and 0.76 per cent respectively, a reflection, say analysts, of the increased presence of individual investors.
Tuesday trade was almost exactly split between individuals and institutions, affecting the types of company stocks seeing gains and partly accounting for the different performance of indexes.
"The EGX30 is mainly driven by institutions and they have become more cautious," says Asarat. "In contrast, individuals were aggressive buyers on Tuesday, swept by optimism vis-à-vis certain speculative small-cap shares, like Lift Slab, Baraka Bank and the paper industry's Rakta, which register on the broader indexes."
Total market turnover was LE501,633,888. Of 185 listed stocks, 110 gained while 66 finished the day in negative territory and nine were unchanged.
Trade was briskest in construction and materials and telecoms, which showed modest rises. Shares in Egyptian for Developing Building Materials gained 8.43 per cent.
Financial services and industrial goods were up, while banking reversed yesterday's climb to finish down. Real estate was active, finishing in the red but showing marginal losses compared to previous days. One company in the sector, Cairo Investment & Real Estate Development, showed the day's largest rise, gaining 9.99 per cent.
"The difference between the highest and lowest price within the same share was very narrow -- we call it a sideways movement of the market and it triggers low trading volume," says Asarat.
The trend was noticeable with shares in Palm Hills Development, the Talaat Moustafa Group and Citadel Capital, among many heavy- weighted shares.
Foreigners marginally stepped up their market presence from Monday, accounting for 34 per cent of trade, but were net-sellers. Egyptians accounted for 59.8 per cent and LE21.24 million of net-buying.