Egyptian stocks pared morning losses on Thursday after a shortlived profit-taking sentiment, traders said. Egypt's benchmark index EGX 30 rose slightly by 0.05 per cent, ending the week's trading at 5,005.09 points. The broader index EGX 70 slipped by 0.04 to 617.4 points, while the EGX 100 was flat at 941.42 points. Volume was low at LE530 million ($88.7 million), according to Bourse data. Commercial International Bank (CIB), the country's biggest private bank by assets, said first-quarter consolidated net income dropped 42 per cent year-on-year, falling far short of most analyst expecations. Egyptian banks were badly hurt by the political unrest that led to the February 11 resignation of president Hosni Mubarak and that prompted the central bank to close banks for almost two weeks. Net profit for the quarter fell to LE307.9 million from 528.8 million pounds in the first quarter of 2010. The bank said it had placed 123 million pounds into provisions in line with its "conservative credit culture and in light of the current levels of uncertainty." Much of Egypt's economy ground to a halt during the quarter due the political unrest, and many businesses are still recovering. GB Auto's quarterly earnings beat analyst forecasts as passenger car sales in Iraq helped offset lower sales in its home market, hit by the political turmoil that brought much of the economy to a halt. The firm, Egypt's biggest listed automobile assembler, said first-quarter net income plunged 88.8 per cent year-on-year to LE7.7 million. But the results beat forecasts from all three analysts polled by Reuters. The three analysts polled by Reuters forecast, on average, that GB Auto's first-quarter net income would total LE6.56 million. Estimates ranged between LE6 and LE7 million. Egyptian shares are expected to remain near two-year lows on weak volumes as investors pore over company results for the first three months of the year, when political turmoil brought much of the economy to a halt. "Everyone is waiting for first-quarter results, because it should be one of the toughest quarters," said Radwa el-Swaify, an analyst with Beltone Financial. Analysts said investors will watch for guidance on company plans for the coming quarters, a period when economic activity is anticipated to stay anemic. Among the biggest companies reporting next week is Orascom Telecom, which is in the spotlight as it spins off a new company after Vimpelcom's (VIP.N: Quote) takeover of its main assets. "The spin-off of the new company should trigger some buying activity," CI Capital wrote in a research note. "Moreover, after a six-month wait, the anticipated announcement of Djezzy's valuation range expected at the end of this month should reflect positively" on OT's performance." OT's Algeria unit Djezzy, which the Algerian government wants to nationalise, is among OT assets that Vimpelcom is taking over as part of a deal that closed in mid-April.
