Egypt Stocks Edge up as Investors Ignore Strikes

Egyptian stocks saw a modest rebound on Monday as investors shrugged off a new wave of labour protests and focused their buying on a select number of market heavyweights. The benchmark EGX30 rose 0.46 per cent to close out the session at 4,746.5 points, clawing back some of the losses it recorded on Sunday. The broader EGX70, conversely, slipped 0.11 per cent. "There were no real public events that had a negative influence on sentiments," said Ashraf Abdel-Aziz, head of institutional sales at Arabeya Online. "We are used to seeing the market rebound following serious slumps such as the one we saw yesterday." The week has begun with a revival of labour protests in the Nile Delta and Suez regions, but this seemingly had little effect on share performances. On Monday, hundreds of workers of the United Sugar Company (USCE) protested at the Saudi Arabian consulate in Suez governorate to press their demands for extra pay.

Meanwhile, thousands of textile workers at the state-owned Mahalla Misr Spinning and Weaving Company – Egypt's largest textiles manufacturer – are striking for the second successive day. Total trade was a clipped LE292.3 million (approx $50 million), nearly half of which -- some LE129m -- clustered around Orascom Telecom Media & Technology. Shares in the telecoms giant tumbled 2 per cent, despite imminent dividend payouts to shareholders on 19 July. Its former stablemate, Orascom Telecom Holding, held steady, however, limiting overall losses for the telecoms sector.

Erstwhile heavyweights Orascom Construction Industries and Commercial International Bank, on the other hand, saw modest gains of 0.3 and 1.2 per cent, respectively. Property shares saw mixed trade, the Talaat Mostafa Group rising 1.5 per cent and Palm Hills Development slipping 2 per cent. Egyptians were the day's net-buyers, scooping up LE34.6 million more in stocks than they sold. Foreigners were net-sellers to the tune of LE38.2 million. From 171 traded stocks, 82 lost value while 66 gained and the remainder held steady.