EGX market watch: Market slips on selective profit taking
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange’s indexes collectively slipped on Thursday, due to selective profit taking transactions, as the benchmark index EGX30 fell by 0.94 percent to close at 7,949 points, compared to 8,025 points on Wednesday.

The market capital dropped to 488.67 billion EGP, compared to 490.99 ($70.54 billion) yesterday, marking 2.3 billion EGP in loss. Further, the EGX70 index for small and mid-caps down edged 0.59 percent, the broader index EGX100 also fell by 0.54 percent and the EGX20 index went down 1.1 percent.

The fall was attributed to Egyptians’ sell-offs, while Arabs and foreigners tended to sell. Egyptians’ net sale reached 35 million EGP, while Arabs’ net purchases registered at 15.8 million EGP and foreigners’ net purchases totaled 19.1 million EGP.

Head of technical analysis and board member of Osool ESB for Securities’ Brokerage Ihab el-Saeed, credited the fall to selective profit taking transactions, especially some of the spinning and weaving shares, including Arab Cotton Ginning Co (ACGC) boosted by Prime Minister Ibrahim Mahlab visit to Mahalla workers Wednesday.

Workers of the Spinning and Weaving Holding Company demonstrated Wednesday in front of the company in Mahalla, Gharbia before the visit of Mahlab and the ministers of manpower, planning, and religious endowment.

The strike aimed to activate minimum wage law and create an elected board of directors to manage the company’s affairs. Mahlab told the workers there will be no privatization and that he supports the workers.

The announcement of Global Telecom (OTMT) financial results for the fourth quarter of 2013 also contributed to the market slip, with the world’s sixth ranked telecommunication giant incurring $748.78 million losses, compared to a $468.9 million  loss in the corresponding period in 2012, said the technical analyst.

However, Saeed said he expects the market to rebound next week, and the EGX30 to edge up again targeting 8200 points.

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