Egypt dips; index wavers near 7,000 point

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Egypt’s benchmark index dropped 0.3 percent to 6,923 points as some investors reduced exposure to equities and the index struggled to break above a psychological barrier of 7,000 points, traders said.

Heavyweight Commercial International Bank took by far the biggest share of trading activity on the Egyptian Exchange falling 1.7 percent.

CIB is still up 12 percent so far this month, its biggest gain coming after a parliamentary election runoff on Dec. 5. Some foreign investors had held off from buying before the outcome was known.

The subsequent rally brought the index to a seven-month closing high of 6,996 points on Dec. 14 and traders said investor appetite then tapered off.

"There is a lack of appetite across all sectors generally. Less participation is expected, especially from foreign traders," said Mohamed Radwan of Pharos Securities.

Ezz Steel fell 1.5 percent and real estate developer SODIC dipped 1.4 percent. Investment bank EFG Hermes slipped 1.1 percent.

"The market is nearing year-end and it is bound to stay flat in this range," said Amr El-Feky, a technical analyst at Cairo Capital Securities.

"If the index breaks the 7,000 level it would likely be with OT and Ezz Steel as they have the potential to push the market back up beyond the 7,000 level," Feky said.


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