Egyptian Market Report: slight gains, despite Euromoney disappointment
The Hermes benchmark index closed 1.72 percent up in Cairo on Tuesday - investors were hoping for good news from the Euromoney conference. The total turnover was EL69.3 million ($19.7 million).
Gainers included PACHIN, which rose nearly 5 percent for the third day running and closed at EL23.53 ($6.72) on volume of just over EL1 million. In London, PACHIN's GDR closed slightly down at $2.15.
Rumors that an anchor investor is interested in the government's stake in the paint and chemicals companies have pushed the stock up from EL20.00 ($5.71) last week.
MobiNil, one of Egypt's strongest stocks, seems to have found some equilibrium at around EL92, despite target prices of around EL200 issued by analysts earlier this year. Shares closed only 0.06 percent higher at EL92.87 ($26.53) on the day's highest volume of EL31.5 million ($11 million).
Shares in Orascom Telecom (OT) continued to see profits taken, despite interest in the company from several European telecom groups: OT closed 1.11 percent down at EL55.35 ($15.81) on the day's second highest volume of EL15.98 million. The company's GDRs closed $0.15 lower at $7.625 in London.
Media Production City saw the listing of new shares from its EL270 million ($77.14 million) capital increase hit the market yesterday, and the bourse lifted its 5 percent gain and loss limits on the company. Investors expecting to see a sharp rise and easy profit were surprised to see the stock falling 5.90 percent on very low volume of just EL855,000 ($244,285) to EL27.76 ($7.93).
Investors were, on the whole, disappointed by the first day of the Euromoney conference. A keynote speech from Prime Minister Atef Abeid was felt to have an air of complacency, if not fantasy about it - and some heavy selling of good stocks was seen in the closing minutes of the session. Some 50,000 shares in blue chip Commercial International Bank (CIB) were, in the words of one broker, "dumped on the market" at EL34.00 ($9.71) - CIB closed 0.49 percent down at EL34.48. Brokers expected the downward trend to continue on Wednesday - further news on France Telecom's supposed bid for Orascom Telecom may galvanize the market next week.
© 2000 Mena Report (www.menareport.com)
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