Egypt Shares Lose EGP4.3 bln in Week on Profit-taking

Big 5

In a week which coincided with Labour Day holiday along with the end of trading sessions of April, Egypt’s stocks incurred losses amounting to 4.3 billion Egyptian pounds. The main stock index, EGX30 dropped by 0.5% throughout trading sessions of last week, registering a decreased of 38.74 points, ending Thursday’s transactions at 8256.14 points compared to 8294.88 points at the end of a week earlier.

The main gauge index registered its highest point on Wednesday closing at 8256.14 points, whereas its lowest point recorded on Monday at 8150.09 points.

In addition, the mid- and small-cap index, the EGX70 dipped by 0.1% closing at 609.4 points during Thursday’s session, compared to 610 points at the end of a week earlier. The price index, EGX100 also dropped by 0.3% concluding by 1064.32 points during Thursday’s session, against 1067 points at the end of a week earlier.

Furthermore, the market capitalization closed at EGP 478.038 billion last Thursday, compared to EGP 482.386 billion at the end of a week earlier.

Turnovers & Traded Volumes:

Through the week, the trading volume hit around 901.5 million securities, compared to 1.3 606 million securities at the end of a week earlier. For the traded value, it reached EGP 3.2 billion against EGP 2.9 billion a week earlier.

Market Remarks

–        Egypt Eyes Releasing ETFs within 6 Weeks – Official

The Exchange Traded Funds (ETFs) in Egypt could be open for business within 6 weeks from now, stock exchange  chairman Mohamed Omran announced on Monday.

Through the ETFs, Egypt is looking forward to increasing liquidity and attracting new investors onto the local market.

Last March, Egypt’s market watchdog ratified the regulations governing the exchange-traded funds (ETFs) alongside the margin trading.

–        Egypt Bourse Grants Beltone the ETFs Licence

On Monday, the Egyptian Exchange (EGX) and Beltone Financial signed an agreement that allows the company to launch XT-MISR, an exchange traded fund (ETF) that mirrors the performance of CASE 30 Index.

EGX Chairman, Dr. Mohamed Omran, said that the activation of index funds would contribute to the diversification of financial tools and other alternatives used by investors. 

Omran added that securities will be traded on daily basis within the XT-MISR fund, which is expected to operate in 6 weeks. 

The CASE 30 Index measures the movement of stocks, reflecting market price and market direction, making XT-MISR an open-ended fund investing in securities simulating the performance of the CASE 30 Index, which includes the top 30 traded companies in terms of liquidity and activity. 

Beltone Financial’s Chairman, Alaa Sabaa, said that XT-MISR is the first of its kind in the Arab region; serving as a simple and easy means of spreading exposure in a diverse portfolio.
XT-MISR is an excellent vehicle for institutions and individuals to take advantage of the investment opportunities that exist today, he added.

Beltone (BTFH.CA) was the first firm to call for the launch of an index fund in Egypt in 2008, before the global financial crisis intervened.

–        Egypt’s Arabian Cement to Announce IPO Price on May 10 –CEO

Also on Monday, Egypt’s Arabian Cement Company has set an indicative price range for a forthcoming stock market flotation at between EGP 8.45 and EGP 9.55 (USD 1.37), with trading to begin on or around May 21, Chief Executive Jose Maria Magrina said.

The deadline for buying orders will be on May 8 for private placement and May 13 for retail. The price of the initial public offering will be announced on May 10, he said.

–        Egyptian Dairy Domty Aims to Float 30% of Company within 2 Yrs

Arabian Food Industries Co (Domty), one of Egypt’s top dairies, plans to float 30 percent of the company in an initial public offering within two years, Chairman Omar el-Damaty has told reporters on Tuesday.

The firm, which has a market share of 32 percent, produces 80 thousand tons of cheese a year and exports to Jordan, Lebanon and Libya.

–        EGX: Trading Halted May 1st Session for Labour Day Holiday

The Egyptian Exchange (EGX) halted trading activities on Sunday, April 20 and Monday, April 21, 2014 for the Easter holidays.