ACG cushions Gulf blow to stock market

Daily Star Egypt Staff
2 Min Read

CAIRO: Egyptian stocks slipped slightly on Thursday as negative sentiment from falling Gulf stock markets weighed on Egypt s bourse, but positive news from Arabia Cotton Ginning helped minimize the fall, traders said. They said the firm had set up a holding company with a paid-in capital of $1 billion with a United Arab Emirates investor, giving it greater opportunity for expansion. Arabia Cotton Ginning (ACG) shares rose LE 1.21 ($0.21), or 9.2 percent, to LE 14.3. The company was not immediately available for comment. Orascom Hotels and Development (OHD) also bucked the downward trend on expectations of strong results next week, a trader said. Shares in OHD rose LE 2.33, or 6 percent, to LE 41.51. ACG shares were the main mover because it was going to announce that it was going to set up a holding company with $1 billion paid-in capital. OHD moved up on expectations of high earnings, said Mohamed Radwan of Delta Securities. Traders said negative sentiment from the Gulf mainly hit the small and medium sized stocks usually favored by retail investors, because larger investors were shopping for bargains. Retail favorite EFG-Hermes shed LE 2.26, or 3.7 percent, to finish at LE 59.25. Telecom Egypt, another retail top pick, fell LE 0.86, or 5.5 percent, to LE 14.9. Overall, the benchmark Hermes index fell 629.54 points, or 1.1 percent, to 57,205.43 points. The broader CIBC index fell 0.4 percent to 232.75 points. The CASE 30 index dipped 0.7 percent to 6,691.44 points. Reuters

Share This Article
Leave a comment