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EGX indices on mixed note; equities gain $461m

EGX indices on mixed note; equities gain $461m
Photo Credit: Arabianeye-Reuters

Cairo-Mubasher: The Egyptian Exchange (EGX) indices ended Thursday’s session on a mixed note, while market capitalization gained around EGP 3.5 billion ($461 million).

The benchmark index EGX30 sagged 0.21% to close at 9843.10 points, while the small and mid-cap index EGX70 gained 0.21% to 576.56 points. The broader index EGX100 added 0.21% or 2.4 points to reach 1145.05 points.

Profit taking continued to weigh on the performance of leading stocks that rose recently, as they were pressured by foreign institutions, said Ehab Rashad, chief executive, Mubasher Trade.

The benchmark soared on Tuesday to its highest level in six years and five months, powered by blue chips.

Foreign institutions ended as net sellers by more than EGP 25.5 million, while Arab institutions and local retail traders were net buyers by EGP 5.5 million and EGP 14 million respectively.

As for stock performance, companies that are among EGX30 constituents, like Maridive, Sidpec, SODIC, Palm Hills, Amer Group, OTMT and Telecom Egypt fell between 0.3% and 1.8%.

“Meanwhile, small and mid-sized stocks showed bullish performance, especially in flour mills sector, as investors were lured by their attractive price levels,” Rashad added.

Most flour mills stocks shut in green, topped by Middle Egypt Flour Mills, then South Cairo Flour Mills, North Cairo Flour Mills, West Delta Flour Mills and Alexandria Flour Mills by percentages between 4% and 7.5%.

Construction firm OCI jumped 6.7% after the company said it will invite shareholders to vote in mid-February on splitting OCI into two companies to separate between the contracting and fertilizer businesses.

Rashad expects EGX indices to resume the rise next week and the benchmark to target a break above the barrier at 10000 points conditional on continued positive catalysts.

“The start of the reporting season will undoubtedly be a positive driver for equities over the coming period,” said the analyst.

Investment group EFG-Hermes posted financial indicators for the fiscal year 2014, showing more than EGP 500 million ($76.5 million) earnings.

Translated by Sayed Abdulrahman

Photo Credit: Arabianeye-Reuters