CAIRO: Blue chip telecoms push Egypt s main index down slightly by the end of trade, reversing a modest midday rally led by heavyweight conglomerate Orascom Construction Industries (OCI).
Traders report low volumes as investors remain wary of equities globally and hold back ahead of upcoming capital increases. OCI gains 0.2 percent.
Volumes are dry. Very, very dry, says Teymour el-Derini of Naeem Brokerage. A lot of money is being put on the sidelines by investors for those capital increases.
Orascom Telecom (OT), which dips 0.8 percent, and Palm Hills Development, which gains 0.1 percent, have both recently approved capital increases.
Mobile operator Egyptian Company for Mobile Services, also known as Mobinil, leads the downward trend, shedding 2.6 percent.
The EGX30 will continue to slide until the market gets a dose of positive news, whether strong company results, a positive economic indicator or a political decision, el-Derini says.
I can see us having a small correction, tomorrow for example, then maybe some continued weakness in the market, he says. I don t think it s going to last too long, the market just needs some positive news.
The EGX30 slips 0.1 percent to 6,702 points. -Reuters