Egyptian stocks look healthy on the back of investment
Egyptian stocks rose slightly on Sunday, with net buying on the part of Arab and foreign investors shoring up an otherwise skittish market.
Egypt's benchmark EGX30 index rose by a weak 0.18 per cent to alight at 5,713 points. The broader-based EGX70 also enjoyed a slight 0.17 per cent rise.
Out of 168 stocks traded, 66 shares registered gains while 63 suffered losses. Blue-chip stocks Orascom Construction Industries (OCI) and Commercial International Bank (CIB) rose by 0.3 per cent and 0.56 per cent respectively.
"Stock market performance was mediocre today compared to last week's performance," Issa Fathy, vice president of securities at the Egyptian Chamber of Commerce, told Ahram Online.
"Arab and foreign investors definitely stopped the market from finishing down when they finished the day with a spate of heavy buying," he added.
Analysts, however, expect the stock market to register losses tomorrow, which will coincide with the second anniversary of former president Hosni Mubarak's ouster.
Several opposition groups are calling to mark the occasion with anti-government demonstrations. Rallies are planned in Cairo's Tahrir Square and outside the nearby Presidential Palace, with observers fearing demonstrations could turn violent.
"The stock market is expected to suffer tomorrow, especially if planned demonstrations get ugly," added Fathy. "The Egyptian market has a tradition of reacting negatively to political standoffs."
Market turnover on Sunday stood at a fragile LE300 million, suggesting that traders remained cautious in light of the current political situation.
Egyptian investors were net sellers for the day, off-selling some LE10 million worth of shares. Foreign and Arab investors represented net buyers, meanwhile, picking up almost LE2 million and LE8 million in stocks respectively.