Egypt's Shares Edge up, Though Investors Fear Islamic Government

Egypt's stocks closed up in trading Thursday, ending the week in the green pushed by specific shares while the bourse remained clouded due to speculation on the form of the new government. The main index, the EGX30, rose by 0.1 per cent recording 4.753.12 points, which is considered small growth and does not stability in investors' dealings, said Eissa Fathy, head of the securities division in the Cairo Chamber of Commerce. "The recently announced Cabinet head and the anticipated government is driving investors to wait and see," Fathy added. Egyptian President Mohamed Morsi on Tuesday appointed Hisham Qandil as his new prime minister, a move that surprised many observers.

Qandil was minister of irrigation and water resources in the interim government of Kamal El-Ganzouri. Fathy added there fears are spreading among traders that the government will be dominated by the Muslim Brotherhood, which could lower their appetite to inject more funds in the market. The broader index, the EGX70, saw gains by 0.8 per cent. The blue-chip Commercial International Bank dipped by 1.4 per cent as foreign investors were net-sellers with LE22.3 million. Egyptians were net-buyers with LE19.3 million.

The trio of high-caps, Orascom Construction Industries, Orascom Telecom, and Orascom Telecom, Media and Technology, all rose, by 1.6, 0.3 and two per cent respectively. Egypt's biggest investment bank, EFG-Hermes, dropped by 1.3 per cent on news that Egypt's financial watchdog put on hold approving its tie-up with the Qatari group QInvest.

The Egyptian Financial Supervisory Authority (EFSA) rejected decisions approved by EFG shareholders last month because the firm did not clarify certain points, including minority rights. Property share Talaat Mostafa Group declined 0.2 per cent. Of 162 listed shares on Thursday, 99 gained and 40 saw losses in a session that witnessed a daily turnover of LE281.8 million.