Egyptian stock market drops for a second day

Egypt's benchmark EGX30 index dropped 0.57 percent to 5,548 points on Monday, while the broader EGX70 index dropped 0.58 percent, as investors express concern about political unrest in the country. “The drop in the market today is a continuation of what started yesterday,” said Ashraf Abdel-Aziz, head of institutional sales at Cairo-based brokerage Arabeya Online. “Investors have not seen any improvement in the political situation, and this is reflected in today’s decline,” said Abdel-Aziz. Civil disobedience campaigns in the Nile Delta cities of Mansoura and Mahalla, in addition to the Suez Canal city of Port Said, caused the main index to plummet, losing 0.84 percent in Sunday’s session. Stocks did, however, experience a “rebound” near the end of the trading session according to Abdel-Aziz. “This is an indication that the market will either pick up or at least stabilise in tomorrow’s session.” A total of 92 traded stocks declined on Monday, including blue chips Orascom Construction Industries, which fell 0.54 percent, and Commercial International Bank, which lost 0.23 percent. Among the 41 gainers, National Societe Generale Bank, which gained 1 percent, was buoyed by this morning’s announcement that the Egyptian Financial Supervisory Authority had approved an offer by Qatar National Bank to acquire 100 percent of NSGB. QNB had initially planned to acquire only 77 percent of NSGB, but EFSA obliged it to submit an offer for the entirety of the French-owned bank’s Egyptian arm. Arab investors ended the day as net sellers, to the tune of LE11.7 million, followed by non-Arab foreigners who net sold for LE4.9 million. Local investors were net buyers, to the value of LE6.7 million. Total daily turnover for the session was weak, registering a mere LE262 million. From: Ahram