Egyptian blue chips edge lower after 12 sessions of gains

 14 Nov 2016 - 14:35

Egyptian blue chips edge lower after 12 sessions of gains
A man walks past a currency exchange bureau advertisement showing an image of the U.S. dollar in Cairo, Egypt, November 11, 2016. REUTERS/Mohamed Abd El Ghany

AFP

DUBAI: Egypt's stock market edged down in early trade on Monday as traders booked profits in blue chips after 12 straight days of spectacular gains fuelled by the float of the Egyptian pound.

The blue chip index, which had soared 28.1 percent since the pound was floated on Nov. 3, fell back 1.0 percent in the first half-hour of trade. The broader EGX100 index dropped 0.5 percent.

Many blue chips rocketed after the float partly because the depreciation of the Egyptian pound meant companies' dollar-denominated global depositary receipts were suddenly worth much more in local currency. But that effect now appears to have largely run its course.

The Cairo-listed shares of Commercial International Bank , for example, fell 0.8 percent to 68.77 pounds early on Monday. At $4.28, its GDRs are worth 67.11 pounds at an exchange rate of 15.75 pounds to the dollar.

Alexandria Mineral Oils gained 3.8 percent to 55.01 pounds after EFG Hermes started coverage of the stock with a "buy" rating, estimating fair value at 65 pounds.