Egyptian stocks rise despite wariness

CAIRO - Egyptian shares edged upwards in relatively thin trade on Monday and brokers said investors remained wary of buying because of Middle East violence.

By (AFP)

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Published: Mon 17 Jul 2006, 10:44 PM

Last updated: Sat 4 Apr 2015, 3:11 PM

“People are getting used to what is happening in Lebanon. But it’s stopping the sharp up-move of the last two weeks,” said Mohamed Kotb of Gezira Asset Management.

“It’s a battle between a relatively cheap market and the geopolitical issues that are preventing the market from performing better,” he added.

The benchmark Hermes index rose 329.54 points or 0.8 per cent to 43,639.02 points while the broader CIBC index ended 1 per cent up at 193.39 points. The widely watched Case 30 index climbed 0.7 per cent to 4,858.95.

“It’s still very volatile and it’s very hard to convince people to buy under current circumstances. You don’t know how far or wide this (the violence) is going to go,” Yasser Hassanein of Dynamic Securities said.

Prices had tumbled at the start of the week’s trading on Sunday morning but shares recovered some of their losses after a one-hour suspension of dealing. The price fluctuations were much less steep on Monday.

Investment bank EFG-Hermes, which accounted for about half the day’s trading, opened sharply down before recovering to end 4.8 per cent up at 25.98 pounds ($4.53).

Investors have speculated that EFG-Hermes might suffer through its shareholding in Lebanon’s Banque Audi, but EFG has tried to reassure them by pointing out that Audi has high liquidity and much business outside Lebanon.

EFG said in a statement it drew 12 per cent of its revenues from its Banque Audi holding in the first quarter of 2006.

Out of the 10 shares most heavily traded on Monday, all but one rose in volume, many by several per cent.

After EFG, the most heavily traded were Arabia Cotton Ginning, up 12.4 per cent at 8.60 pounds, and Ezz Steel Rebars, up 1.8 per cent at 46.05 pounds.

Vodafone Egypt, which releases its first quarter results within hours, rose 3.1 per cent to 82 pounds.

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