Egyptian indexes ended mixed on Monday as big caps weighed on the country's main index, traders said. The North African country's main index EGX 30 rose by 0.27 per cent, ending the day's trading at 6,650.55 points. The EGX 70 index, which measures 70 of the country's small and mid caps, shed 1.59 per cent to 728.16 points. Volume hit LE1.4 billion ($255 million), according to the Egyptian Exchange. Orascom Construction Industries, Egypt's largest builder by market value, inched up by 0.78 per cent, closing at LE239.16 per share. Orascom Telecom, the largest Arab mobile operator by subscribers, gained 0.33 per cent to LE6.06 per share. In a related event, HC Brokerage cut its rating on Egypt's cigarette monopoly Eastern Company to "hold" from "buy," and said margins at the company would be pressured in the near term by high raw material and labor costs, Reuters reported. The brokerage also said it expected a weak dividend payout from the company this year, and lowered its price target on the stock to LE131.2, down 13 per cent. HC said it does not expect tobacco leaf prices to fall as the tobacco industry faces international supply shortages, increased restrictions on tobacco leaf plantation in some countries, and subsidy elimination on tobacco cultivation in Europe. Egypt's Sinai Cement said consolidated net profit rose 62 per cent in 2009 to LE671.5 million. The firm last year reported net profit of LE414.1 million for 2008. Egyptian developer Palm Hills Developments said on Monday its full-year 2009 net profit fell 28 percent on a year ago, to 475.6 million Egyptian pounds ($86.6 million). Its net profit in the fourth quarter of 2009 was 185.1 million pounds, up from 113.5 million pounds a year earlier, the company said in an earnings release. Meanwhile, equity investors kicked off the new month in a buying mood, lifted by speculation an EU deal over Greek debt was pending and piling into mining stocks as copper prices rose after the Chile earthquake. Uncertainty over British politics, meanwhile, knocked sterling to its lowest level against the dollar in nine months. World stocks as measured by the Morgan Stanley Capital International (MSCI) were up 0.4 per cent, with emerging markets gaining one per cent, adding to gains made in late February. European Union Economic Affairs Commissioner Olli Rehn was due in Athens for talks with Greek officials about the country's debt crisis. Financial markets have been speculating that Rehn's visit, if successful, could move EU governments closer to announcing some form of emergency aid for Greece in exchange for a pledge by Athens to take fresh budget steps. "The markets are still focused on risk right now so it will be critical to see a resolution of some of the fiscal concerns in Europe," said Macquarie Securities strategist Michael Kurtz. The pan-European FTSEurofirst 300 was up 0.9 per cent. It was also lifted by mining stocks as copper gained 3.8 per cent on likely supply disruptions in major producer Chile. "Mining stocks are up on the back of the earthquake in Chile, and it seems as though there's a move toward a solution in the Greek situation, so there's a slightly more optimistic mood all around," said Richard Hunter, head of equities at Hargreaves Lansdown. Sterling fell to a nine-month low against the dollar, hit by political uncertainty after an opinion poll showed chances of an inconclusive result in a British election due in months.
