EGX 30 Retreats 1.18% Amid Political Concerns
During Monday closing session, the Egyptian Exchange (EGX) has extended posting losses which hit around EGP 4.3 billion as the capital market has amounted to EGP 373.419 million. Such losses come on the Mohamed Mahmoud incidents anniversary eve.
The EGX indices closed in dark red.
The main index, EGX30 pushed down by 1.18% to close at 5413.78 p. EGX20 dropped by 1.36% to end at 6199.56 p.
Meanwhile, the mid- and small-cap index, the EGX70 dived by 2.44% to conclude 485.4 pts. Price index EGX100 sank by 1.91% to finish at 811.7 p.
Traded volume reached 147.983 million securities worth EGP 402.145 million, exchanged 24.929 thousand transactions.
This was after trading in 175 listed securities; 143 declined, 16 advanced while 16 keeping their previous levels.
EGX’s closing losses were driven by the non-Arab Foreigners’ selling pressures that seized 14.58% of the total markets, with a net equity of EGP 18.047 million excluding the deals.
On the other hand, Egyptians and Arabs were net buyers 81.98% and 3.44% respectively, of the total markets, with a net equity of EGP 11.998 million and EGP 6.048 million excluding the deals.
EGX’s main shares witnessed downwards amid the current developments including Israel’s recent shelling of Gaza.
Citadel Capital (CCAP.CA)’s stock sank by 3.49% to finish at EGP 3.60. The Company’s Chairman and Founder Ahmed Heikal announced on Monday submitting a bid to Egypt’s Ministry of Petroleum and Metallurgical Wealth so as to supply the natural gas to one million residential units. He estimated the project’s investment cost at around EGP 2.5 billion, or EGP 2500 per unit in order to reduce butane demand.
Orascom Telecom Holding (OTH) (ORTE.CA) pushed 3.02% lower to close at EGP 3.53. Weather Investments, chaired by Egyptian telecoms magnate Naguib Sawiris, launched its $5 billion claim on Monday against Algeria for allegedly inflicting damages to stakes it owned in the Egyptian Orascom Telecom Algerie, most popularly known as Djezzy.
‘The Algerian Government committed to a number of protections, including a promise to refrain from arbitrary interference in our operations, but has since 2008 pursued a campaign of interference and harassment which has cost Weather Investments over $5 billion in damages,’ Sawiris said in a statement.
Orascom Telecom Media & Technology Holding (OTMT.CA)’s stock edged down by 1.72% to end at EGP 0.57.
Orascom Construction Industries – OCI (OCIC.CA)’s stock fell by 1.32% to conclude at EGP 251.07.
EFG-Hermes Holding (HRHO.CA) fell by 0.46% to close at EGP 10.86. The investment bank has reported on Monday a 9-month consolidated net profit of EGP 232.089 million, 19% down from a net profit of EGP 286.014 million for the same period a year earlier.
Gaza Crisis:
The investors lost their appetite due to the mounting death toll in Gaza on Monday.
At least 25 people have died in the Gaza Strip as Israeli forces kept up air strikes they say are aimed at stopping rocket attacks into Israel.
Fewer rockets have been launched, but some have hit southern Israeli towns.
Ninety-four Palestinians and three Israelis have died since Wednesday. They include nine members of a Gaza family apparently killed by mistake.
Efforts to secure a ceasefire continue, with a senior Egyptian official saying there are “encouraging signs”.
Israeli Prime Minister Benjamin Netanyahu said on Sunday he was ready to expand the operation, after Israel authorized the mobilization of up to 75,000 army reservists.
Egyptian President Mohammed Morsi has said an Israeli ground invasion would have “serious repercussions”, saying Egypt would never accept it “and neither will the free world”.
The Arab League, which met in emergency session in Cairo on Sunday, is sending a delegation of foreign ministers to Gaza on Tuesday.
Constitution Dilemma:
A number of liberal politicians withdrew on Sunday from the Islamist-dominated assembly drafting Egypt’s new constitution, saying they were not given the opportunity to discuss articles and their suggestions were being ignored.
The departure of at least 12 liberals from the 100 member assembly follows the resignation of five Christian delegates – as well eight out of 10 members of an advisory committee providing technical assistance – over similar complaints.
And analysts have expressed worries that if the constitution does not enjoy broad consensus it will be a short-lived one, especially as it will have to be put to a referendum.
Pressure is mounting on the assembly to finish before a December 12 deadline but members say they will continue on schedule.
“Passing the constitution in its current form is a loss to everyone, we can’t be part of this constitution,” former Arab League secretary general and assembly member Amr Moussa told reporters, adding that differences were on “basic” articles.
“We were deprived of discussing articles which is the main task of the assembly,” the former presidential candidate added, criticizing the assembly’s “rush” to finish. Moussa said the withdrawal was final.
Liberals, who include people behind the uprising that toppled Mubarak as well as figures who worked alongside him, have threatened to quit the assembly several times before.
They say they will work on drafting an alternative constitution.
Assiut Train-Bus Accident:
The Egyptian Exchange administration has observed a one-minute of silence for the children killed in Assiut train before starting its trading session on Sunday. About 51 young children were killed on Saturday when a train collided with their bus on a railway crossing in Manfalut, 356 kilometers (220 miles) south of Cairo.
The EGX has delayed its trading session of Sunday for a minute as it started at 10:31a.m. amid high expectations of witnessing downwards due to the current political scene including the Egyptian church and Wafd Party’s withdrawal from the constituent assembly to draft the country’s new constitution.
Ashraf Abdel-Aziz, head of institutional sales at Cairo-based Arabeya Securities, said the Egyptian market had also suffered from Saturday’s road/rail collision in the Upper Egyptian Assiut Governorate in which more than 50 children were killed.
In reaction to the tragedy, dozens of angry Assiut residents staged demonstrations to demand the local governor’s resignation.
