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Institutional buying stems Egypt bourse losses

Investment bank EFG-Hermes, the most heavily traded stock by volume, rebounded from initial losses to end almost 4 percent up at 53.30 Egyptian pounds ($9.25).

Lower than expected first quarter results had weighed on the stock in the previous session, traders said.

The benchmark Hermes index had lost over 2 percent to trade as low as 52,422.3 points but later inched up to regain some losses.

“The market opened very weak, by mid-session it started to pick up again, because there was institutional buying ..., both local and foreign,” said Sarah Tolba of Delta Securities.

The benchmark Hermes index edged down 0.3 percent by the end of the session to 53,754.44 points and the Case 30 index also dipped 0.4 percent to 6,279.0 points. The broader CIBC index also fell 0.4 percent to 222.54 points.

“There was a lot of institutional buying today ... as an institution it’s hard to pass up these levels, because they’re attractive levels to buy at,” said Yasser Hassanein of Dynamic Securities.

Alexandra Iron and Steel, a stock mostly traded by larger investors because of its relatively high share price, rebounded from a mid-session low of 1,098.9 pounds to finish 1.7 percent up at 1,209 pounds. ($15.76 Egyptian pounds)