Egypt stocks rise on projected political stabilisation Final deadline for the formation of the new Cabinet and adjournment by Egypt's Court of ruling on constitution-drafting assembly assured investors
Egypt share ended the day on a positive note, with the benchmark index EGX30 gaining 2.03 per cent on Tuesday to close at 4,862.53 points. This comes after many sessions of very mild gains that followed days of losses. Turnover also rise to some LE411 million, more than the double of Sunday's trading volume of LE170 million. Political situation continue to be the main driver that affects Egypt's bourse. The positive performance of the market Tuesday is mainly a reflection of relative political stability. "The adjournment of the ruling on constitution- drafting assembly till 24 September assured investors over the coming two months during which the constitutional assembly may finish the writing of the constitution", Eissa Fathy, head of securities at the Cairo Chamber of Commerce, told Ahram Online. Egypt's Supreme Administrative Court (SAC) decided Monday to postpone the court ruling over a petition filed by Muslim Brotherhood lawyers to late September. The petition calls for the recusal of the judges expected to rule on the validity of the second Constituent Assembly. Confirmation by the president spokesman that members of the presidential consultative body will be revealed, and the ministerial cabinet will be announced and sworn-in next Thursday was another comforting factor for investors. "That means the corners of the executive power will be completed and that is assuring somehow," explains Fathy. Foreigners ended the session as net buyers recording a net flow of LE14.64 million. Domestic investors and Arabs were net sellers recording net flows of LE12.18 and LE2.46 million respectively. "Foreigners were net buyers oppositely to most of the recent sessions. It can be a mere coincidence unless it continues for some days; however, it is positive as it shows there is some liquidity in the market, "notes Fathy. Egyptian Company for Mobile Services (MobiNil) gained some 6.77 per cent, biggest market cap Orascom Construction Industries (OCI) gained 3.53 per cent, and Orascom Telecom Media and Technology Holding (OTMT) rose by 3.57 per cent. EGX decided to suspend trading on El Ezz Steel, Egypt's biggest steel company, till the company responds to EGX inquiries concerning recent newspapers reports which said some banks have frozen financing $148 million for Ezz Group. Of 169 stocks traded on the Egyptian market, 112 registered gains and 43 lost value. The boarder index EGX70 gained some 1.02 per cent.
